Truist downgrades PGT Innovations on limited upside potential from takeover bids

PGT Innovations

09/01/2024 15:10

Dec 13 (Reuters) -    ** Truist downgrades vinyl and
aluminum door maker PGT Innovations Inc  PGTI.N  to "hold" from
"buy", says limited upside potential to co's stock prices from
recent buyout bids 
    ** Shares of PGTI rise marginally to $41.67
    ** "In order to continue to recommend the shares as a Buy,
we think the takeout price would need to reach roughly $48 per
share or more (implying a 15%+ upside potential from current
levels), which we doubt will occur" - Truist
    ** PGTI in December agreed to Masonite International's
 DOOR.N  $3 billion bid of $33.50 in cash and $7.50 common stock
per share
    ** Miter Brands last week also offered $41.50 per share in
cash in an unsolicited bid for PGTI, after two of its previous
offers were rejected
    ** Truist raises co's PT to $43 from $38, representing a 3%
upside to the stock's last close
    ** One brokerage rates the stock "buy" and three "hold";
their median PT is $42.25 - LSEG data
    ** PGTI's stock had risen ~127% in 2023

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))