B. Riley downgraded Vista Outdoor to Neutral from Buy with an unchanged price target of $43. The recent share rally reflects the escalating assumed probability of at least a $42 per share takeout and the exploration of strategic alternatives, which could result in a superior valuation to shareholders, the analyst tells investors in a research note. However, the firm believes there could be material downside to shares if a sufficient bid for Revelyst does not materialize. Riley thinks share upside from here relies upon a superior offer for the whole company materializing.
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