Gymbore Downgraded To Neutral

Sterne Agee has downgraded The Gymboree Corporation GYMB from Buy to Neutral in its most recent research report. In the report, Sterne Agee writes "We are lowering our rating from Buy to Neutral on Gymboree following the successful completion of $1.47 billion in debt financing for some 81% of the deal price of $1.8 billion and the recent commencement of Bain Capital's tender offer for all Gymboree shares at $65.40 per share in cash. This represents a significant premium of 57.4% to the price which the shares were trading at before media reports of a transaction. Our price target on GYMB had been $62. While the agreement stipulated that GYMB would be able to solicit acquisition proposals from third parties up to November 20, 2010, we believe Bain's bid will prevail." The Gymboree Corporation closed yesterday at $65.15.