Categories: Stock Market News

TD Cowen upgrades Despegar to ‘maintain’ on Prosus buyout deal


Investing.com — TD Cowen upgraded Despegar.com Corp (NYSE:DESP) to “maintain” from “promote” after the Latin American on-line journey agency agreed to be acquired by Prosus (OTC:PROSF) for $19.50 per share in money.

The deal, representing a 33% premium to Despegar’s Friday shut, values the corporate at 26 instances its anticipated 2025 earnings.

TD Cowen famous that the valuation is excessive relative to friends however displays potential synergies in value and cross-selling.

Despegar, a web based journey platform with a powerful presence in Latin America, has confronted headwinds not too long ago because of macroeconomic and forex pressures in Brazil. The deal worth displays a turnaround alternative amid slowing development relative to business friends, TD Cowen famous.

Expedia (NASDAQ:EXPE), which owns an 11.4% stake in Despegar, will profit from the deal however is just not anticipated to make a competing supply, in line with TD Cowen. The corporate has a long-term provide partnership with Despegar, contributing $405 million in gross reserving quantity in 2023, or 0.4% of Expedia’s whole.

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