Stifel Nicolaus Raises PT To $25 On SFE In Morning Summary

Stifel Nicolaus has raised its price target from $23 to $25 on Safeguard Scientifics SFE and is maintaining its Buy rating on the stock. Says Stifel Nicolaus, in the summary, “Safeguard Scientifics (SFE, Buy) has announced that Advanced BioHealing (ABH) has been acquired by Shire Pharmaceuticals for $750 million in cash. Safeguard has an approximate 24% ownership of ABH and management indicated the sale will equate to approximately $140 million in proceeds to SFE which is in line with our previously published expectations of value. With this exit we estimate SFE has $13.70 of net cash on the balance sheet (stock is currently at $19.23). We estimate book value will increase by $6.50/share to $17.90 as SFE previously held ABH at $0.20/share on its balance sheet. Following this announcement we are raising our sum of the parts target price to $25 from $23 which implies a 12 month return of 30% from current levels.” SFE closed at $19.23 yesterday.