Analyst John Kim from BMO Capital maintained a Hold rating on Plymouth Industrial Reit and keeping the price target at $24.00.
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John Kim has given his Hold rating due to a combination of factors influencing Plymouth Industrial Reit’s current market situation. One of the primary reasons is that the shares are trading at a significant discount compared to the offer price from Sixth Street, which suggests uncertainty in the market regarding the completion of the deal. The lack of an official announcement from Plymouth Industrial Reit since acknowledging the offer indicates that they might be in an exclusivity period with Sixth Street, which could be contributing to the market’s cautious stance.
Additionally, discussions with the company’s management reveal that Plymouth Industrial Reit is not actively pursuing new investment activities and is instead concentrating on its current operations. The engagement of J.P. Morgan and KeyBanc Capital Markets as financial advisors further suggests that the company is taking a strategic approach to evaluate the offer. The market’s skepticism is also fueled by the unsolicited and non-binding nature of Sixth Street’s offer, alongside the extended diligence period, despite Sixth Street already holding a significant stake in the company. These elements combined lead to the Hold rating as the situation develops.
In another report released on September 15, Barclays also reiterated a Hold rating on the stock with a $24.00 price target.