Hold Rating on Dayforce Inc. Amid Thoma Bravo Acquisition Offer

In a report released today, Jared Levine from TD Cowen downgraded Dayforce Inc to a Hold, with a price target of $70.00.

Jared Levine has given his Hold rating due to a combination of factors surrounding the recent acquisition offer for Dayforce Inc. by Thoma Bravo. The offer is an all-cash transaction at $70 per share, which represents a significant premium over the company’s recent closing price. Levine notes that there are no other apparent logical acquirers, making the completion of this transaction likely.
Given the circumstances, Levine has adjusted the price target to $70 to align with the offer price, reflecting the expected value of the shares if the acquisition proceeds as planned. The analyst also highlights that any competing bid would need to surpass the current offer significantly due to a substantial termination fee outlined in the merger agreement. Therefore, the Hold rating reflects the expectation that the stock price will stabilize around the offer price until the transaction’s anticipated closure.