DA Davidson analyst Michael Baker lowered the firm’s price target on Destination XL (DXLG) to $3 from $3.50 and keeps a Buy rating on the shares. The firm cites the Fund 1 Investments having made a takeover bid for the company at $3 per share, which equates to an enterprise value of $128M. Given Fund 1’s bid for Nordstrom (JWN), the Destination XL deal should be favorable from a shareholder perspective given its lower EBITDA margins compared to Nordstrom, the analyst tells investors in a research note.
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Read More on DXLG:
- Destination XL confirms receipt of non-binding proposal from Fund 1 Investments
- Destination XL Group Reports Quarterly Loss and Lowers Outlook
- Amazon invests $4B more in Anthropic, Gap reports Q3 beat: Morning Buzz
- Morning Movers: Gap gains and Destination XL sinks following earnings
- Destination XL sees FY24 revenue $470M
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
