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Fly News Breaks for February 5, 2020
NSRGY, AIMT
Feb 5, 2020 | 09:38 EDT
In a research note titled "So Much For That Financing Overhang," Piper Sandler analyst Christopher Raymond says he's "incrementally positive" on Aimmune Therapeutics (AIMT) shares on news that Nestle (NSRGY), which already owned 18.5% of the company, will make an additional $200M investment. Some of yesterday's stock weakness may have been attributable to worries over a prospective financing, so this news removes that overhang, Raymond writes in a research note. Further, with Nestle's ownership now pushing 20%, some takeout premium has to be factored into Aimmune shares at some point, adds the analyst. The prospect of an outright take out by Nestle "has to be factored in more than before," contends Raymond, who keeps an Overweight rating on Aimmune with a $60 price target. The stock in early trading is up 9.5%, or $2.78, to $32.15.
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