Reservoir Media takeover offers ‘appear too cheap,’ says Roth Capital

Roth Capital views the offers to acquire Reservoir Media (RSVR) for $10-$11 per share as “materially undervaluing the company” and would view something closer to the firm’s target price of $15.00 as “more fair to public investors.” However, the firm has “limited belief that a bid at these levels will arise” given the high degree of related-party equity ownership with 44% of shares owned by one bidding party and its view that a “hostile” third-party bid does not really make sense due to the relationship-driven nature of Reservoir’s business. The firm keeps a Buy rating on Reservoir shares.

Claim 70% Off TipRanks Premium

Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>

See Insiders’ Hot Stocks on TipRanks >>

Read More on RSVR:

Disclaimer & DisclosureReport an Issue

Reservoir Media says Irenic offering buyout at $10-$11 per share Irenic submitted bid worth $10-$11 a share for Reservoir Media, Bloomberg says Reservoir Media Issues Updated Investor Presentation and Outlook Reservoir Media Earnings Call Highlights Profitable Growth Reservoir Media reports Q3 EPS 3c vs. 8c last year

View Comments