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PerkinElmer: New Mountain Offer Worth $15.80/Share To Investors

Aug. 01, 2022 1:58 PM ETRevvity, Inc. (RVTY)4 Comments
Zach Bristow profile picture
Zach Bristow
3.21K Followers

Summary

  • PerkinElmer posted its Q2 earnings with a solid set of results that prompted an upward revision of FY22 guidance.
  • Also announced was New Mountain Capital's intention to buy a carve-out of businesses from PKI on a $2.45 billion consideration.
  • The transaction could be accretive to PerkinElmer and potentially be valued at ~$15.80/share to shareholders.
  • We value PKI stock at $180 and rate it a speculative buy to capture the upside from the New Mountain transaction.

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Investment Summary

Investors awoke to PerkinElmer, Inc. (PKI)'s Q2 FY22 earnings this morning. The company posted upsides from top to bottom and secured a strong non-GAAP set of results. To add further validity to the company's fundamental momentum, it declared a $0.07 dividend and

This article was written by

Zach Bristow profile picture
3.21K Followers
Equity strategist, global equities, at Bernard Family Office. Analyzing market trends to tell investors what's the best investments based on macroeconomic, idiosyncratic factors.Shoot me a message to talk trade ides or portfolio construction. Disclaimer:Please remember to conduct your own due diligence.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PKI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (4)

just say no profile picture
There's no loss of income from selling 2.45B of assets?
Mean Reversion Investor profile picture
@just say no they have debt to pay down and more M&A they’d like to do. This will bring net leverage down faster than expected and allow them to accelerate both.
bluescorpion0 profile picture
@Mean Reversion Investor do they say how much of the debt they'll pay off?
Mean Reversion Investor profile picture
@scorpionblue not that I’ve seen but they’ve stated their net leverage goal so I see no reason they wouldn’t use part to help hit targets faster than expected.
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