Berkshire Grey downgraded to Hold from Buy at Craig-Hallum

Craig-Hallum analyst Greg Palm downgraded Berkshire Grey (BGRY) to Hold from Buy with a price target of $1.40, down from $2.50. On Friday, Berkshire Grey entered into a merger agreement with Softbank Group (SFTBY), whereby it will be acquired in an all-cash deal for $1.40/share, which equates to a $375M transaction. The firm is "disappointed" with the outcome as the purchase price significantly undervalues the company, in its view. Craig-Hallum is "cognizant of the current macro environment" however, and the company’s need for additional financing which it expects played a major role in the decision. While there are plenty of strategic acquirers that could express interest in acquiring the company, given the current macro/financing environment and the no-shop provision, the firm isn’t counting on a higher bid, even though it is possible.