Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - BMO Capital raised its price target on SpartanNash Company (NASDAQ:SPTN) to $26.90 from $20.00 on Tuesday, while maintaining a Market Perform rating on the stock.
The price target adjustment follows C&S Wholesale’s announcement on Tuesday of plans to acquire SpartanNash for $1.77 billion, or $26.90 per share in cash. BMO Capital estimates this acquisition price represents approximately 6.3x EV/EBITDA based on its 2025 EBITDA forecast of $267 million for SpartanNash.
BMO Capital acknowledged potential regulatory risks associated with the deal, particularly regarding SpartanNash’s wholesale divisions and military commissary businesses, which may face scrutiny. The firm indicated these regulatory hurdles are "likely not insurmountable."
For comparison, BMO noted that United Natural Foods (NYSE:UNFI) purchased Supervalu in 2018 for $2.9 billion, which the firm estimated represented a 7.4x EV/EBITDA multiple at that time. That merger "has not been viewed as a successful merger in hindsight," according to BMO’s analysis.
The acquisition announcement did not specify targeted synergies between C&S Wholesale and SpartanNash. BMO pointed out that the Supervalu/UNFI merger had planned for $175-185 million in synergies.
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