B. Riley analyst Eric Wold keeps a Buy rating on Vista Outdoor with a $38 price target after Colt CZ proposed an unsolicited strategic combination that values Vista at $30 per share. The proposed combination “not only overlooks the potential for meaningful margin improvement for the Outdoor Products segment next year but neglects to consider both the regulatory risks of the proposed combination and the likelihood that the valuation multiple of the combined company will remain constrained” and penalize current Vista shareholders even further, the analyst tells investors in a research note. The firm views the offer as “inferior” to Vista’s plan to sell its sporting products business.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See Insiders’ Hot Stocks on TipRanks >>
Read More on VSTO:
- Vista Outdoor up 7% at $27.50 in pre-market after unsolicited Colt CZ offer
- Vista Outdoor discloses unsolicited proposal from Colt CZ Group at $30 per share
- Vista Outdoor (NYSE:VSTO) Gets an Unsolicited Merger Proposal
- Vista Outdoor sees FY24 adjusted EPS $3.65-$4.05, consensus $4.18
- Vista Outdoor reports Q2 adjusted EPS 96c, consensus $1.05
