Raymond James keeps a Strong Buy rating on Brighthouse Financial (BHF) after the Financial Times reported that TPG and Aquarian Holdings are the final bidders remaining for Brighthouse. The shares reacted negatively yesterday, as the article stated both offers were at a small premium to Brighthouse’s market value, the analyst tells investors in a research note. In addition, according to the article, Blackstone, Apollo, Carlyle, and Sixth Street either dropped out of the process or their bids were not advanced. Raymond James sees the selloff as a buying opportunity. These types of articles are likely an invitation to bring sidelined bidders to come back into the process, the firm contends. It believes other bidders could re-enter the process, pushing up the buyout premium. Raymond James reiterates its takeout price of $77 per share and standalone valuation of $66, implying a price target of $72.
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