Jamieson Wellness' Kirin Offer Undervalues Growth Potential

Dow Jones08-07

1155 ET - Kirin's C$45.75-a share offer for Jamieson Wellness may undervalue the company's strong growth trajectory, says TD Cowen's Cheryl Zhang. In a report, Zhang says she is "surprised that the offer price was not higher," noting the bid came in below her expectations. The analyst assigns a 75% probability that the deal closes as proposed, but sees a 25% chance of an improved offer given Jamieson's "high-quality asset," status, leading market share in Canada, and projected 11% compound annual revenue growth through 2028. Following the announcement, TD raises its price target on the stock to C$49 from C$48 to reflect a probability weighted outcome, while downgrading the stock to hold from buy. Shares are up 9.6% to C$45.47.

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