The Carlyle Group (CG) has acquired a minority equity stake in Resonetics, a portfolio company of private equity firm GTCR, for a purchase price of about $2.25 billion. As per the agreed terms, Carlyle will join GTCR as a meaningful shareholder in Resonetics.
Resonetics engages in micro-manufacturing for medical devices and is focused on fabricating highly technical componentry for complex medical device applications. (See Carlyle stock charts on TipRanks)
The CEO of Resonetics, Tom Burns, said, “Our business has advanced significantly over the past four years, as we’ve expanded our production capacity, grown our facility footprint and built greater scale.”
“We have enjoyed the outstanding partnership with GTCR as we’ve built Resonetics and are excited to be partnering with GTCR and Carlyle in this next chapter as we continue to grow our business and enhance our product capabilities to better serve our customers,” Burns added.
Wall Street’s Take
Last month, Citigroup analyst William Katz maintained a Buy rating on Carlyle and raised the price target to $73 from $66. The new price target implies 37.3% upside potential from current levels.
Katz is of the opinion that the company will be able to deliver its financial targets in 2022 and has potential for valuation expansion.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 5 Buys and 3 Holds. The average Carlyle price target of $65.38 implies 23% upside potential.
Carlyle scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.