PGTI - PGT Innovations may be worth more than $37/share in a takeout - analyst

2023-04-03 15:30:11 ET

PGT Innovations ( NYSE: PGTI ) may be valued at more than $37 a share in possible takeover, according to Deutsche Bank. PGT rose 1%.

The analysis comes after PGT Innovations ( PGTI ) shares gained 10% on Friday after the company adopted a limited-duration shareholder rights plan, or "poison pill," after an unidentified strategic investor accumulated shares.

"In our opinion, the company's rights plan is entirely justified based on where the stock has been trading, was deployed for the right reasons and does not represent an attempt to entrench current management or resist a change in control in all cases," Deutsche Bank analyst Joe Ahlersmeyer wrote in a note earlier Monday.

"On the contrary, we see this as adherence to fiduciary duties as the board seeks to ensure that if the company does change hands, it transacts at full value, which we estimate could be in excess of ~$37 for an acquire," Ahlersmeyer added.

Ahlersmeyer, who has a buy rating on PGT ( PGTI ), raised his price target on the stock to $33 from $29.

The Deutsche Bank note comes after a Jefferies analyst on Friday said PGT ( PGTI ) may be worth $33 a share or more in a takeover.

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