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By Sam Boughedda
Investing.com — Zendesk Inc (NYSE:) inventory fell Friday after the corporate revealed on Thursday night that it’ll purchase Momentive World Inc (NASDAQ:) in a deal valued at round $4 billion.
In response, various analysts lowered value targets and downgraded Zendesk inventory.
Momentive shareholders will obtain 0.225 Zendesk shares for every share of Momentive they personal, equating to a complete worth of round $4.1 billion primarily based on Thursday’s closing value.
The businesses anticipate to shut the transaction within the first half of subsequent yr. Zendesk stated it expects the deal to be increase development within the first full working yr. Momentive, which modified its identify from SurveyMonkey again in June, is predicted to assist velocity up Zendesk’s income plan to $3.5 billion in 2024.
Reacting to the information, Jefferies downgraded Zendesk shares to carry from purchase, chopping the value goal to $120 from $175.
Oppenheimer downgraded Zendesk to carry out from outperform.
Financial institution of America downgraded the inventory to impartial from purchase.
Craig-Hallum Downgraded Momentive to carry from purchase with a $28 value goal. Additionally they lowered Zendesk’s value goal to $150 from $185, sustaining a purchase score.
In the meantime, Morgan Stanley analyst Stan Zlotsky lowered Zendesk’s value goal to $135 from $185, saying that the “giant and surprising deal for a slower development” firm overshadowed its Q3 outcomes, which got here in above expectations.
Zendesk’s inventory hasn’t carried out nicely 2021, presently within the pink, down round 30% for the yr primarily based on its present $100.96 value on the time of writing.
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