UBS cuts Adevinta to 'neutral' following takeover offer

Adevinta ASA

23/11/2023 14:19

** UBS downgrades Adevinta  ADEA.OL  to "neutral" from
"buy," seeing balanced risk/reward for the Norwegian online
classifieds group following a takeover offer on Tuesday
    ** Adevinta received a bid from a consortium led by Permira
and Blackstone  BX.N , which leaves upside to the share price
contingent on the deal developments, the broker says
    ** The stock is up >60% YTD
    ** However, UBS notes low liquidity and overhang from
potential sell-downs from its two largest shareholders Schibsted
 SCHA.OL  and eBay  EBAY.O  
    ** Until those issues are resolved, the broker expects
shares to underperform relative to the company's strong
fundamentals 
    **Out of 15 analysts that cover the Adevinta stock, seven
rate it "strong buy" or "buy" and eight rate it as "hold" – LSEG

 (Reporting by Elsa Ohlen)
 ((elsa.ohlen@thomsonreuters.com; +48 58 7696600;))