Citi raises TP for Australia's Blackmores, reflecting Kirin bid

Kirin Holdings Co

08/06/2023 21:21

** Citi says buyout bid from Japan's Kirin is likely to suit
Australia's Blackmores Ltd  BKL.AX  investors with relatively
shorter time horizons
    ** The vitamin maker is in the middle of a buyout deal by
Japanese drinks giant Kirin Holdings Co  2503.T , which has
agreed to buy BKL for $1.2 bln   
    ** Brokerage says bid has come at a time with downside risk
to demand, given consumer headwinds are intensifying
    ** Citi says Kirin bid has attractive features, like being
an all-cash deal and allowing co to unlock franking credits
    ** Brokerage upgrades target price to A$95.0 from A$94.01,
while maintaining a "neutral" rating 
    ** The company still has long duration growth potential in
its Asian markets and opportunities to cut costs - Citi 
    ** Four of seven analysts rate the stock "hold" and three
"sell"; their median PT is A$88.60 – Refinitiv data
    ** Stock has risen 30.2% this year, as of last close

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))