RBC Capital upgraded Summit Materials (SUM) to Outperform from Sector Perform with a price target of $53, up from $45, after the company disclosed it received a non-binding acquisition proposal and has held initial discussions with the interested party. Summit’s decision to put out a release with a formal comment while not outright rejecting the offer “gives the potential for a transaction some weight,” the analyst tells investors in a research note. The firm sees this as an “encouraging development” for shareholders, with ongoing dialogue about a potential takeout likely to provide support for the stock. RBC believes a takeover bid in the low-to-mid $50’s per share “is supported.” Shares of Summit Materials are up 5% to $45.59 in early trading.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on SUM:
- Summit Materials upgraded to Outperform from Sector Perform at RBC Capital
- Quikrete could offer ‘low-to-mid $50’ price for Summit Materials, says Barclays
- Jefferies could see takeout price for Summit Materials ‘in the mid-$50s’
- Summit Materials discloses receipt of non-binding acquisition proposal
- Summit Materials jumps after Bloomberg says Quikrete made takeover approach