Jefferies says $33-plus share price ‘reasonable’ for PGT Innovations in takeover

After PGT Innovations announced the adoption of a limited-duration shareholder rights plan, or "poison pill," in response to what it says is "a likely accumulation of PGT shares by a strategic investor," Jefferies analyst Philip Ng says "there aren’t many obvious public players, but there are a handful of large private players in the window manufacturing space that could, logically, be potential acquirers." While noting that the company is not running a sales process, the firm believes a takeout multiple in the range of about 10 times 2023E EV/EBITDA "seems reasonable," noting that this equates to about a $2.5B purchase price or $33-plus per share. The firm has a Buy rating and $28 price target on PGT Innovations.