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Investing.com - Canaccord Genuity downgraded Spirent Communications Plc. (LON:SPT) (OTC:SPNUF) from Speculative Buy to Hold with a price target of GBP1.99.
The downgrade comes as the stock approaches the GBP1.99 per share cash offer price proposed by Keysight in its acquisition bid, leaving less than 2% upside potential from current levels.
While Chinese regulatory approval for the acquisition remains outstanding, Canaccord Genuity believes the completion of Keysight’s cash offer is "highly likely" as the planned disposal of Spirent’s HSE business should adequately address regulatory concerns.
The firm noted that the 3.5p pre-deal dividend has now been paid to shareholders, meaning investors stand to receive 199p per share in cash if the transaction closes as expected.
The limited remaining upside potential between the current share price and the acquisition offer price was cited as the primary reason for the rating change to Hold.
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