Stifel Nicolaus, analysts increased target priceAndlauer Healthcare Group Inc. (TSX:AND). Stifel Nicolaus Canada analysts increased their target price on the stock to $52.50 per share from $46.50, while maintaining a “Buy” rating, after the Company announced a $114.7 million acquisition of 100% of Skelton Canada and 49% of Skelton U.S., a temperature-controlled healthcare products transportation business with domestic Canadian, U.S. and cross boarder services.
“We see solid strategic rationale as this takes out one of AND's Canadian Specialized Transportation competitors and marks AND's inaugural move into the highly fragmented U.S. 3PL market. No synergies have been disclosed, however we believe there will be operational efficiencies and opportunities for cross-selling Healthcare Logistics to Skelton customers,” the analysts wrote.