BMO downgrades Altra Industrial Motion to reflect planned merger, raises PT

Regal Rexnord

21/12/2022 13:03

** BMO downgrades automation equipment maker Altra
Industrial Motion Corp  AIMC.O  to "market perform" from
"underperform", raises PT to $62 from $50
    ** Brokerage updates rating following Regal Rexnord Corp's
 RRX  announcement of acquiring AIMC on Oct 27
    ** "Even though the combined businesses will have sizable
presences in certain areas, competitive landscapes across most
of the companies' end markets are characteristically very
fragmented" - BMO
    ** Believes a competing offer for AIMC will not emerge, deal
appears to be a fair value being paid for AIMC, as per BMO's
calculations
    ** BMO expects minimal antitrust scrutiny in the acquisition
  
    ** Brokerage reduces its 2022 EPS est. for AIMC to $3.3 from
$3.4
    ** RRX had agreed to buy AIMC for $62 a share, in a deal
valued at $5 bln
    ** Up to last close, AIMC had risen 14.8% YTD 
 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuter.com))