SC - Santander Consumer USA downgraded at BMO after parent's offer disappoints

Roman Tiraspolsky/iStock Editorial via Getty Images BMO Capital analyst James Fotheringham downgrades Santander Consumer USA ([[SC]] -0.1%) to Market Perform from Outperform after SC's parent offers $39 per share to acquire the rest of SC's public float. "We are disappointed by the offer price (we think SC is worth $46), but it's a deal stock now," Fotheringham writes in a note to clients. SC recently trades up 0.1% at ~$40.62, above the offer price. Sees SC trading back to mid-$30s if SC's board rejects the offer and Banco Santander (SAN) walks away. "With SC now trading at the midpoint of these extremes, we suggest investors take profits," the analyst said. Even before the offer was made, SA contributor Junius was wary of Banco Santander saying its valuation faced a tough backdrop.

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Santander Consumer USA downgraded at BMO after parent's offer disappoints