Hillenbrand stock price target raised to $32 from $24 at DA Davidson

Investing.com - DA Davidson raised its price target on Hillenbrand (NYSE:HI) to $32.00 from $24.00 while maintaining a Neutral rating on the stock. The move comes as Hillenbrand’s shares have surged over 21% in the past week, with InvestingPro data showing the stock currently trading at $31.31.

The price target adjustment follows Hillenbrand’s announcement that it has entered into a definitive agreement to be acquired by Lone Star Funds in an all-cash transaction.

The deal values Hillenbrand’s enterprise at approximately $3.8 billion, or $32.00 per share, which represents 9.4 times the company’s estimated 2025 EV/EBITDA based on DA Davidson’s projections.

DA Davidson’s price target increase directly reflects the acquisition price offered in the transaction agreement.

The investment firm has maintained its Neutral rating on Hillenbrand stock in light of the pending acquisition.

In other recent news, Hillenbrand, Inc. has announced a significant development with its agreement to be acquired by Lone Star Funds. The all-cash transaction is valued at $32.00 per share, translating to an enterprise value of approximately $3.8 billion. This acquisition price represents a 37% premium over Hillenbrand’s closing share price on August 12 and a 53% premium over its 90-day volume-weighted average price. In a separate development, S&P Global Ratings has downgraded Hillenbrand’s credit rating to ’BB’ from ’BB+’ due to elevated leverage and assigned a negative outlook. DA Davidson has maintained its Neutral rating on Hillenbrand’s stock, with a price target of $24.00, while adjusting its fiscal year 2025 estimates. Additionally, Hillenbrand has been exploring strategic options, including a potential sale, as reported by Bloomberg. The company has engaged an adviser to assess interest from potential buyers.

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