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On Wednesday, Truist Securities adjusted its rating on PetIQ Inc. (NASDAQ:PETQ) stock from Buy to Hold and slightly raised its price target to $31.00 from the previous $30.00. The revision followed PetIQ's announcement of an acquisition agreement with Bansk Group, a private company, at a price of $31 per share.
The all-cash transaction, which values PetIQ at approximately $1.5 billion, is set to close in the fourth quarter of 2024, subject to shareholder approval. This deal represents a multiple of 11.5 times Truist Securities' fiscal year 2024 EBITDA estimate for PetIQ. On Tuesday, PetIQ's stock price surged to $30.42, marking a 47.9% increase, in response to the acquisition news.
Truist Securities noted that, given the acquisition announcement and the stock's significant price movement, they do not anticipate any further bidders for PetIQ. As a result, the firm has decided to downgrade PetIQ's share rating to Hold.
The acquisition by Bansk Group is a notable development for PetIQ, a company specializing in pet health and wellness. The definitive agreement at $31 a share offers shareholders a clear exit strategy at a set price, reflected in the stock's recent ascent and the adjusted price target set by Truist Securities.
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