US stock futures dip as Nvidia earnings spark little cheer
Investing.com - BofA Securities has reiterated a Buy rating and $170.00 price target on Coventry Health Care (NYSE:CVH), currently trading at $5.22 with a market cap of $940.61M, as arbitrators may have reached a decision on the legal dispute surrounding Chevron ’s (NYSE:CVX) acquisition of Hess (NYSE:HES). According to InvestingPro analysis, CVH appears slightly undervalued with a GOOD Financial Health Score of 2.63.
Media reports indicate that after nearly two years of delays, a resolution to the arbitration is expected shortly, according to BofA Securities analyst notes.
The dispute centers on claims by Exxon (NYSE:XOM) and CNOOC (NYSE:CEO) that they hold rights of first refusal to purchase Hess’s stake in the Stabroek block in Guyana, where they are partners.
BofA Securities outlines two possible outcomes: either the right of first refusal clause will be found not applicable in a full corporate takeover, allowing Chevron’s all-stock deal to close imminently, or the clause will be found to apply, effectively meaning only Exxon would be able to acquire Hess.
The Chevron-Hess deal has already cleared Federal Trade Commission antitrust review and received board and shareholder approval, leaving the arbitration decision as the remaining hurdle.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.