What Happened?
Shares of global alternative asset manager TPG (NASDAQ: TPG) jumped 2.3% in the morning session after reports surfaced that the private equity firm, along with Blackstone, was in advanced negotiations to acquire medical device maker Hologic. The potential take-private deal valued Hologic at more than $17 billion, including debt, with a discussed price above $75 per share. According to people familiar with the matter, the firms had agreed on the terms and lined up the necessary debt financing for what would be one of the year's biggest take-private transactions. The news also caused shares of Hologic to rise.
After the initial pop the shares cooled down to $56.10, up 2.2% from previous close.
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What Is The Market Telling Us
TPG’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 3.8% on the news that two investment firms expressed a positive outlook on the company, with BMO Capital initiating coverage and BofA Securities raising its price target. BMO Capital began its coverage with an "Outperform" rating and set a price target of $65. The firm highlighted TPG's strong start to the year in fundraising, product expansion, and overall execution as key reasons for its constructive long-term view. Separately, BofA Securities increased its price target on TPG to $69 from $65, while maintaining a "Buy" rating. BofA's analyst noted expectations for TPG to have the "strongest all-around quarter" among its covered asset managers, citing "robust" fundraising and improving investment activity.
TPG is down 12% since the beginning of the year, and at $56.10 per share, it is trading 21.3% below its 52-week high of $71.29 from November 2024. Investors who bought $1,000 worth of TPG’s shares at the IPO in January 2022 would now be looking at an investment worth $1,650.
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