On Thursday, Barclays (LON:BARC) adjusted its stance on Ascential Plc (LON:ASCL:LN) (OTC: AIAPF) stock, downgrading it from Overweight to Equalweight, while simultaneously increasing the price target to GBP5.70, up from GBP3.75. The revision follows the recent takeover bid by Informa for Ascential's entire issued and to-be-issued ordinary share capital, which was proposed at 568 pence per share.
The offer from Informa represents a significant 53% premium over Ascential's share price prior to the emergence of bid news. Barclays' new price target reflects the premium offered by Informa and the implied valuation of the company.
According to Barclays' calculations, the offer values Ascential at approximately 15 times EBITDA, marking an increase from the 10.5 times EBITDA multiple used in Barclays' previous Sum of the Parts (SOTP) valuation method.
This proposed acquisition has made headlines due to the substantial premium offered, which has influenced Barclays' assessment of Ascential's stock. The offer price is closely aligned with the new price target set by Barclays, suggesting that the market may have reached a fair valuation of Ascential's shares in light of the potential acquisition.
As the market processes the implications of the takeover bid, Ascential's stock will continue to be observed for any further developments or responses from the company's management or shareholders regarding the offer from Informa.
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