Keefe Bruyette Raises DigitalBridge Price Target to $11, Maintains Market Perform Rating

Keefe Bruyette has raised its price target on DigitalBridge (DBRG) to $11 from $10.50, while maintaining a Market Perform rating on the shares.

DigitalBridge Group, Inc. (DBRG) has seen its price target raised to $11 from $10.50 by Keefe Bruyette, while maintaining a Market Perform rating on the shares. This move comes amidst the company's ongoing acquisition of WideOpenWest (WOW), a leading broadband provider in the United States. The acquisition, valued at approximately $1.5 billion, is expected to close by the end of the year or in the first quarter of 2026, subject to regulatory approvals and stockholder approval [1].

The acquisition is structured as an all-cash transaction, with DigitalBridge and Crestview Partners, the latter being WOW's largest shareholder, agreeing to roll over all of its shares. The transaction values WOW at $5.20 per share, representing a 37.2% premium to its unaffected price of $3.79 prior to the initial non-binding offer of $4.80 submitted by the purchaser group on May 2, 2024 [1].

The fairness of the transaction is under scrutiny, with Wohl & Fruchter LLP investigating the potential conflict of interest, given that Crestview, the largest shareholder, will roll over its equity, while public shareholders will not receive the same benefit [2]. The special committee of the WOW Board of Directors has unanimously approved the transaction, with the recommendation of a special committee of independent and disinterested directors [2].

DigitalBridge Group, which is transitioning into a leading global investment manager in digital infrastructure assets, believes the acquisition positions WOW to deliver meaningful benefits to its customers and the communities it serves. The companies intend to invest in expanding and upgrading WOW's networks, adopting new technologies, and ensuring the organization has the resources and support needed to continue delivering fast, reliable internet service and a high-quality customer experience at competitive prices [1].

Upon completion of the transaction, WOW will no longer be traded or listed on any public securities exchange. The transaction is expected to bring significant and immediate value to WOW stockholders, while also providing an ideal capital partner in DigitalBridge to support WOW's long-term strategy, including geographic expansion and network technology upgrades [1].

References:
[1] https://www.ainvest.com/news/wideopenwest-acquired-digitalbridge-1-5b-2508/
[2] https://www.ainvest.com/news/wohl-fruchter-llp-investigates-fairness-wideopenwest-sale-digitalbridge-group-crestview-partners-2508/