LH - Syneos Health may be worth between $40-$53 a share in a sale - analyst

Syneos Health ( NASDAQ: SYNH ) may be worth toward the midpoint of a range of $40-$53 a share, according to a Barclays analyst.

The analysis comes after after a Monday report that the contract research organization has started a new effort to sell itself, sending Syneos shares up 6.4%. Syneos ( SYNH ) hired Bank of America and Centerview as its financial advisors to explore a new set of talks with potential buyers, including industry peers and financial buyers, according to a Reuters report.

If Syneos Health ( SYNH ) is acquired, it would likely be a leveraged buyout and or/or a merger of equals, Barclays analyst Luke Sergott, who has an underweight rating on SYNH wrote in a note on Tuesday. Sergott raised his price target to $45 from $30 amid the takeover report.

"Either way, our conservative SOTP shows significant upside potential to shares," Sergott wrote. "We would expect the acquisition valuation to trend toward the midpoint of our range between $40-$53."

The latest Syneos ( SYNH ) speculation comes  after Syneos ( SYNH ) in November 2021 said it was not engaged in discussions on a potential combination or transaction with LabCorp ( LH ) after a Bloomberg report that the companies were in talks to combine assets. Reuters reported in March 2020 that Syneos was exploring a sale with advice from Centerview.

The Reuters report also follows some activist speculation earlier this month after Gordon Haskett highlighted that Goldman Sachs added more than 3 million shares of Syneos ( SYNH ) in Q4.

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