FOCS - Morgan Stanley upgrades Focus Financial as take-private bid accretive to shareholders

• Morgan Stanley on Wednesday upgraded Focus Financial Partners ( NASDAQ: FOCS ) to Equal-weight from Underweight as Clayton, Dubilier & Rice's $53/share take-private offer is accretive to shareholders.
• "There do not appear to be material contingencies against the deal," said analyst Ryan Kenny. "... our conversations with investors suggest general support for the deal."
• Morgan Stanley raised its EPS estimate for Focus ( FOCS ) ahead of earnings, given equity market appreciation. 2023 adj. EPS estimate was raised to $4.03 on higher revenues, partially offset by higher management fees, cash comp and interest expense.
• The research firm raised its price target on Focus ( FOCS ) to $53 from $35, implying 5.7% potential upside to its last close, in line with the proposed take-private bid price.
• Focus ( FOCS ) will report Q4 results on February 16, with conference call scheduled for 8.30 am ET.
• Morgan Stanley's stance is in line with SA Quant's Hold rating , but contrasts bullish sell-side ratings .
• Earlier, Focus ( FOCS ) was downgraded at BMO as it is unlikely to see a competing bid .

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