J.P.Morgan raises PT on Aerojet Rocketdyne after L3Harris deal

Aerojet Rocketdyne Holdings

20/12/2022 10:33

** J.P.Morgan raises PT on U.S. rocket maker Aerojet
Rocketdyne Holdings Inc  AJRD.N  to $58 from $54 after
announcement of its acquisition by L3Harris Technologies Inc
 LHX.N 
    ** The deal value represents ~7% premium to the $4.4 billion
Lockheed Martin Corp  LMT.N  was prepared to pay for Aerojet in
late 2020, and "we see this as a very solid outcome for Aerojet
shareholders" - J.P.Morgan 
    ** Lockheed would have taken on less risk with an AJRD
acquisition and its cost of capital would have been
significantly lower too, says brokerage
    ** JPM expects regulators to permit LHX to acquire Aerojet
    ** J.P.Morgan, however, downgrades AJRD to "neutral" from
"overweight" 
    ** Up to Monday's close, shares of Aerojet up ~19% YTD
 (Reporting by Kannaki Deka in Bengaluru)
 ((Kannaki.Deka@thomsonreuters.com))