Hillenbrand: DA Davidson maintains Neutral, raises PT to $32 from $24.

Hillenbrand: DA Davidson maintains Neutral, raises PT to $32 from $24.

DA Davidson has raised its price target for Hillenbrand (NYSE:HI) to $32.00 from $24.00, while maintaining a Neutral rating on the stock. This adjustment comes as Hillenbrand’s shares have surged over 21% in the past week, currently trading at $31.31, according to an Investing.com report.

The price target increase follows Hillenbrand’s announcement of a definitive agreement to be acquired by Lone Star Funds in an all-cash transaction. The deal values Hillenbrand’s enterprise at approximately $3.8 billion, or $32.00 per share, which represents a 9.4 times the company’s estimated 2025 EV/EBITDA, the Investing.com report said. DA Davidson’s price target adjustment directly reflects the acquisition price offered in the transaction agreement.

The acquisition price represents a 37% premium over Hillenbrand’s closing share price on August 12 and a 53% premium over its 90-day volume-weighted average price. Additionally, S&P Global Ratings has downgraded Hillenbrand’s credit rating to 'BB' from 'BB+' due to elevated leverage and assigned a negative outlook, according to the Investing.com report.

DA Davidson has maintained its Neutral rating on Hillenbrand’s stock, with the adjusted fiscal year 2025 estimates. The company has also been exploring strategic options, including a potential sale, as reported by Bloomberg.