Broker snap: Peel Hunt ups target for Evolution after Investec offer

9th Sep 2011 12:11

Following Investec's recommended offer for Evolution, Peel Hunt has raised its target price on the investment banking and stockbroking firm from 86p to 100p to reflect the offer price.Investec, the FTSE 100 South African banking titan, announced on Friday morning that it has made a recommended offer for Evolution Securities, beating rival bidder Cannacord in their race to snap up the company. Investec said that it has reached an agreement with Evolution's board on terms of a recommended share offer, valuing the business at £233.2m, or 100.24p per share."Our range of suggested values was 86p to 117p, with 100p broadly in the middle looking like a fair offer given prevailing market conditions (albeit some investors may be disappointed by the lack of a cash offer)," the broker said.Peel Hunt keeps its hold rating on the stock.BC