Envision Buyout Price Could Approach $50 Per Share, Says Oppenheimer

After Bloomberg reported that private equity firms Carlyle Group (CG) and Onex (ONEXF) have shown interest, Oppenheimer analyst Michael Wiederhorn says he believes a buyout offer for Envision Healthcare (EVHC) could approach $50 per share.

The stock in afternoon trading is up 8% to $27.96. Such an offer is based on an 11 times 2018 EBITDA estimate, which is a multiple similar to the one paid by Blackstone (BX) for Team Health in late 2016, Wiederhorn tells investors in a research note.

The analyst believes Envision has a "strong growth business" and he recommends continuing to buy the shares at current levels.

Wiederhorn has an Outperform rating on Envision with a $40 price target.
 


 

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.