Jefferies downgrades Snap One following $1.4 bln takeover by Resideo

Resideo Technologies

16/04/2024 12:05

** Jefferies downgrades home automation products distributor
Snap One  SNPO.O  to "hold" from "buy" while raising its PT to
$10.75 from $10
    ** Resideo Technologies  REZI.N  said it has agreed to buy
SNPO in a deal worth about $1.4 billion including debt
    ** "Following the announcement by Resideo that they will
acquire SNPO for $10.75/shr, we downgrade the shares of SNPO to
Hold from Buy," said Jefferies
    ** SNPO is in the very early innings of market share and M&A
growth in our view, and home automation trends provide strong
underlying growth - Brokerage
    ** "The shares are trading at a significant discount to
other specialty distributors, and we anticipate ample upside
post the company's recent IPO," it added
    ** 3 of 8 brokerages rate the stock "buy", 5 "hold"; their
median PT is $10.88
    ** YTD, SNPO up 18.29%

 (Reporting by Abhinav Parmar in Bengaluru)
 ((Abhinav.parmar@thomsonreuters.com))