CIBC World Markets Inc. downgraded its rating on RuggedCom Inc. (TSX: RCM.TO) to "Sector Performer" from "Sector Outperformer", while raising its price target on the stock to C$33.00 from C$28.00.
RuggedCom has agreed to a C$33-a-share bid from Siemens Canada, a 50
percent premium to Belden Inc.'s (NYSE: BDC) hostile offer of C$22 a
Ontario-based RuggedCom provides communications networking services
designed for use in harsh environments such as in oil refineries,
military applications and electrical power substations.
CIBC analyst Todd Coupland said "this price is a very good premium for RuggedCom and that shareholders should tender."
"While the Siemens offer leaves open the chance that another party
could come in with a superior offer, all interested parties have likely
made their "best" pitch," Coupland wrote in a note.
RuggedCom shares, which have been trading in the 52-week range
between C$12.25 and C$33.00, is currently trading unchanged at C$32.85