Often we like to look at price targets and upper bounds to determine if a company has overpaid for a company it is buying. Eastman Chemical (EMN) is buying Solutia (SOA) for $22. The upper bound of Solutia is still much higher therefore we can determine that Eastman did NOT overpay for Solutia. We note EMN is above its price target but that will change once the deal with Solutia closes.
No comments:
Post a Comment