- Signify Health ( NYSE: SGFY ) may be valued at $30/share or more in a sale after a WSJ report that CVS Health ( NYSE: CVS ) is i nterested in bidding for the home healthcare company, according to a UBS analyst. Signify shares jumped 16%.
- Signify ( SGFY ) could see $25-$30/share in a leveraged buyout, UBS analyst Kevin Caliendo wrote in a note. A strategic buyer such as CVS could do a deal that would be accretive to earnings in a range of $23-$39/share.
- For CVS ( CVS ) specifically an acquisition would turn "modestly" dilutive if the takeout price were to approach $39/share, Caliendo wrote. Caliendo also analyses potential accretion for takeover's by UnitedHealth ( UNH ) and Humana ( HUM ). CVS, UNH and HUM are Signify's ( SGFY ) three largest customers.
- SGFY short interest is 13%.
- The WSJ first reported on Tuesday that Signify Health ( SGFY ) was looking at strategic alternatives, including a possible sale.
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Signify Health may be worth as much as $39/share in a potential sale - analyst