Vista Outdoor should react positively to cleared TKG deal, says Roth MKM

Roth MKM keeps a Buy rating and $40 price target on Vista Outdoor after the company announced that the Committee on Foreign Investment in the United States, or CFIUS, had cleared the sale of The Kinetic Group, or TKG, to Czech defense contractor CSG. The stock should react positively to CFIUS approval as it locks in more certainty around the valuation of TKG while providing $18/share in cash consideration plus a share of Revelyst to holders of record upon final close, the analyst tells investors in a research note. CFIUS approval was the most difficult element of this deal to handicap, with the final key milestone being the shareholder vote set for next Tuesday, the firm added.