Market's view on Spirent
Published on April 2024
- Stock price has traded almost 10% below acquisition price, which is unusual and attributed to large investors selling off their shares to invest elsewhere.
- It is considered normal for a stock to trade slightly under acquisition price, as the market does not currently expect a counteroffer, though some watchers are still anticipating a higher offer.
- There are suggestions that Spirent Communications is undervalued and could potentially see a bidding war, with Numis analysts advising shareholders to hold out for at least £240 per share, indicating the stock could reach £3 or higher.
- Concerns are raised about the UK equity market undervaluing Spirent, contrasting with potentially higher valuations if traded on a platform like Nasdaq.
- There is anticipation of a possible bidding war for Spirent, with different potential outcomes depending on the actions of companies like VIAVI and Keysight Technologies.
- The market is watching for potential new bids from companies like Keysight Technologies, with speculations about the possible bid prices based on current stock values.
- Discussion includes whether shareholders need to hold shares until the purchase to receive special dividends, indicating financial strategies in response to the acquisition scenario.