This morning, Citi upgraded National Semiconductor from sell to hold hours after the company was acquired by Texas Instruments.The note, from Citi:
TXN announced it will acquire NSM for $25 per share in cash after the market’s close Monday; NSM ticked up 73% to $24.30 in after market trading. TXN plans to finance the $6.5B transaction with existing cash and debt. The deal is expected to close in six to nine months pending approval from regulators and NSM share holders. We see little risk of regulatory approval and would expect NSM share holders to readily tender shares given NSM’s recent growth and execution challenges. We raise NSM’s target price to $25 and upgrade NSM to Hold (2S) from Sell (3S).
Citi’s $25 price target on National Semiconductor is a little higher than where it stands right now, at 24.10.