On Tuesday, Jefferies made a minor adjustment to its stance on Agiliti Inc (NYSE:AGTI), downgrading the medical equipment stock from Buy to Hold and setting a new price target of $10.00, a slight decrease from the previous $10.50.
The downgrade was prompted by news that THL Partners, Agiliti's majority shareholder, had reached an agreement to acquire all outstanding shares of Agiliti that it does not already own.
The agreed purchase price is $10 per share, which represents a 30% premium over the closing price on February 23, 2024. Given that THL Partners currently owns 72% of Agiliti's outstanding shares, the analyst believes that it is improbable for any competing bids to surpass THL's offer.
The analyst from Jefferies indicated that the decision to downgrade Agiliti's stock was based on the belief that THL's proposal is a fair valuation of the company, considering Agiliti's current earnings and growth projections. The offer price aligns with the company's financial outlook, suggesting that the transaction reflects an appropriate assessment of Agiliti's market value.
Investors and market watchers are now looking at Agiliti from a new perspective, as the potential acquisition by THL Partners could lead to changes in the company's structure and strategy.
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