logo
  Join        Login             Stock Quote

Deutsche Bank Downgrades Crexus Investment (CXS) to 'Hold' After Annaly (NLY) Offer

 November 13, 2012 02:43 PM
 


(By Balachander) Deutsche Bank (DB) downgraded its rating on shares of Crexus Investment Corp. (NYSE: CXS) to "hold" from "buy" after Annaly Capital Management Inc. (NYSE: NLY) offered $12.50 per share in cash for the remaining shares of CXS.

"Given that we expect CXS to accept NLY's offer and with shares trading within 1 percent of the all-cash offer, we are downgrading shares of CXS to a 'hold' from a 'buy'," the bank said.

[Related -How To Prepare Your Portfolio For Rising Interest Rates]

The bank raised price target on the stock to $12.50 from $12.00 based on Annaly's all-cash offer.

DB does not expect any other bidders to emerge and expects CXS to accept Annaly's offer, which represents a roughly 5 percent premium to 9/30 book value of $11.93 per share.

"Given overlap between FIDAC employees and CXS's board of directors, a special committee will be created to review the offer, which we assume will be accepted," DB said.

CXS shares, which have been trading in a 52-week range of $9.06 to $12.67, shed 0.32 percent to trade at $12.39 on Tuesday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageRussell 2000 Showing Relative Weakness at the New Highs

A quick “Quad Index” Grid shows us that the small-cap Russell 2000 is showing relative strength to the read on...

article imageThe Poster Boy For Liberal Economics Discovers The Tax Factor

Paul Krugman seems to be having a supply-side-economics moment… sort of. Raising taxes, the NY Times read on...

article imageMacroprudential Policy And Distribution Of Risk

There is very little doubt that housing prices and leverage played a strong role in the global financial read on...

article imageIs the World Turning Japanese?

Many really think so, but reality suggests read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

The Truth About The Impact Of Dividend Reinvesting
More Articles on: Finance



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.