Jefferies analyst Bret Jordan downgraded IAA (IAA) to Hold from Buy with a price target of $40, down from $55, after the company agreed to be acquired by Ritchie Bros. (RBA) in a stock and cash deal valuing the company at .58 RBA share plus $10 cash per IAA share and the assumption of $1.0B in net debt. He expects IAA’s price to be tied to Ritchie Bros’ until the tentative closing of the deal in the first half of 2023 and believes shares will no longer trade on the longer-term earnings growth potential.
Published first on TheFly
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Read More on IAA:
- Ritchie Bros Posts Q3 Beat; Tanks on $7.3B IAA Deal
- Ritchie Bros. upgraded to Outperform at Barrington after IAA deal announcement
- IAA downgraded to Underperform from Outperform at Barrington
- Ritchie Bros. to acquire IAA in stock, cash transaction valued at $7.3B
- IAA reports Q3 adjusted EPS 45c, consensus 50c
