Roth Capital views the offers to acquire Reservoir Media (RSVR) for $10-$11 per share as “materially undervaluing the company” and would view something closer to the firm’s target price of $15.00 as “more fair to public investors.” However, the firm has “limited belief that a bid at these levels will arise” given the high degree of related-party equity ownership with 44% of shares owned by one bidding party and its view that a “hostile” third-party bid does not really make sense due to the relationship-driven nature of Reservoir’s business. The firm keeps a Buy rating on Reservoir shares.
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