Bingo Industries has received a takeover offer from CPE Capital. Morgans lifts the target price to $3.50 to align with the indicative offer price. This is a 28% premium to the last close before the market disclosure of the approach.
The bid is unsolicited, highly conditional (due diligence, financing, minimum and maximum acceptance conditions), non-binding, and indicative.
The broker believes there is potential for another bidder to emerge as the current bid price may understate potential forward earnings. Additionally, it’s considered other bidders may also position for upcoming structural change within the industry.
The Hold rating is maintained. The target price is increased to $3.50 from $2.47.
Sector: Commercial & Professional Services.
Target price is $3.50.Current Price is $3.30. Difference: $0.20 – (brackets indicate current price is over target). If BIN meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
