Stephens downgraded Carrols Restaurant (TAST) to Equal Weight from Overweight with a price target of $9.55, down from $13, after the company and Restaurant Brands (QSR) announced a $1B acquisition agreement whereby the remaining 85% of Carrols shares not already owned by Restaurant Brands will be acquired for $9.55 per share. The deal is at the lower-end of other comparable transactions reviewed within the limited service segment, likely reflecting some combination of the company-owned model, the relative size of the transaction to the acquirer, and/or Burger King’s status as a relatively mature brand, the analyst tells investors in a research note.
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