Liberum hikes target price on Sanne
Analysts at Liberum hiked their target price on Sanne from 660.0p to 875.0p on Friday following the group's interim results earlier in the week and due to an updated takeover offer from Cinven.
Liberum stated Sanne's first-half trading update released on Wednesday guided to trading being in line, but stated there was also encouraging progress on new business wins, which were up roughly 38% on half-on-half.
The analysts also noted that within the trading update, Sanne announced its acquisition of PraxisIFM's European fund administration business for £54.0m, which lead them to increase their full-year fully diluted earnings per share estimates by 4.5%.
"Our FY21 net debt estimate rises from £17m to £72m, or 1.2x net debt/EBITDA, as we expect the cash consideration to be paid on 1 November," added Liberum, which maintained its 'hold' rating on the stock given ongoing takeover discussions with Cinven.
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