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Hold Rating Driven by Henkel Takeover Premium and Limited Upside Beyond Deal Terms

Hold Rating Driven by Henkel Takeover Premium and Limited Upside Beyond Deal Terms

Analyst Dara Mohsenian of Morgan Stanley maintained a Hold rating on Olaplex Holdings, boosting the price target to $2.00.

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Dara Mohsenian has given his Hold rating due to a combination of factors tied mainly to the announced acquisition by Henkel at a substantial premium to Olaplex’s prior trading price. With Henkel agreeing to pay $2.06 per share in cash, valuing the company at roughly $1.4 billion and about 15 times projected 2025 adjusted EBITDA, most of the upside now reflects the deal terms rather than independent fundamental improvement.

The board’s approval and backing from Advent International, which controls the majority voting stake, significantly increase the likelihood that the transaction will close, limiting scope for alternative bids or meaningful re-rating. As a result, the updated price target of $2.00 essentially tracks the agreed deal value and leaves limited risk‑reward for new investors, making a Hold stance more appropriate than a more aggressive recommendation.

In another report released on March 27, TipRanks – DeepSeek also reiterated a Hold rating on the stock with a $2.00 price target.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OLPX in relation to earlier this year.

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