Citi Has Hold On National Financial Partners

Citi Investment Research has a Hold rating and a $16 price target on shares of National Financial Partners Corp NFP, as it acquired Lapre Scali & Co. In a note to clients, Citi writes, "NFP announced the acquisition of Lapre Scali & Co. — terms of the deal were not disclosed however we estimate a revenue multiple of 1.5x-2.0x which equates to a purchase price of ~$32M-$42M. NFP has stated that with their stock at current levels all deals would be done with cash on the balance sheet so we anticipate the deal was an all cash transaction. We estimate the deal could add ~$0.04/shr on a run rate basis, see Figure 1 for details. Maintain 2H rating and $16 TP." At last check, shares of NFP were up 29 cents to $11.79, a gain of 2.5%.