Oct. 24 at 6:25 PM
$PZZA Allergan
In June 2019, AbbVie (ABBV) announced its acquisition of Allergan.
Following the announcement, many analysts who covered Allergan stock either suspended their rating or noted that the stock's price would now be dictated by the terms of the deal.
For example, when a deal is definitive, an analyst will likely shift their rating to "Tender" or "Neutral," with a price target at or near the offer price, effectively meaning a "no rating" based on fundamental analysis.
Whole Foods Market
In June 2017, Amazon announced its plans to acquire Whole Foods.
The announcement caused Whole Foods' stock price to immediately jump and trade near the offer price of
$42.X per share.
In response, analysts from firms like Credit Suisse and others suspended their ratings. For instance, an analyst may issue a note that says, "We move our rating to a 'Tender' recommendation, pending the close of the deal," which is equivalent to suspending coverage based on fundamental value.
