RBC Capital downgrades Sanne, lifts price target after Cinven offer
RBC Capital Markets downgraded shares of asset management services provider Sanne to ‘sector perform’ from ‘outperform’ on Monday, but lifted the price target to 925p from 750p following the latest 875p-a-share takeover approach from Cinven.
The bank said the latest approach from Cinven is "getting closer to what shareholders would be willing to accept" and is also within 6% of its previous upside value of 925p, which factors in M&A.
"Whilst we believe a higher approach/bid is feasible, we see less upside at these levels and there remains some risk of no formal bid being made," RBC added.
Sanne said on Friday that it was in talks with Cinven regarding the new offer, having previously rejected offers of 830p and 850p a share.