On Thursday, Tyman Plc. (TYMN:LN) experienced a revision in its stock rating as Jefferies shifted its stance from Buy to Hold. The firm also adjusted the price target for the company's shares to GBP4.00, an increase from the previous target of GBP3.60. This adjustment aligns with the recent acquisition offer from Quanex (NYSE:NX) to purchase all shares of Tyman.
The rationale behind the downgrade is the limited upside potential, with less than a 15% total return projected over a 12-month period. Despite this change in rating, the analyst's forecasts for Tyman remain unchanged. The revised price target now matches the offer price of 400 pence per share proposed by Quanex.
In addition to the stock new price target, the downside scenario price target has been increased to 296p, which represents the share price prior to the disturbance caused by the acquisition news. Meanwhile, the upside scenario price target is set at 480p, acknowledging the possibility of a competitive bid emerging.
The anticipated completion of the Quanex transaction is expected in the second half of 2024, subject to the fulfillment of certain conditions. The deal's closure will likely influence the future financial landscape of Tyman.
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