RBC Capital downgrades Schroders, lifts PT on Nuveen takeover

(Sharecast News) - RBC Capital Markets downgraded Schroders on Monday to 'sector perform' from 'outperform' but lifted the price target to 610p from 440p to reflect the total consideration of its takeover bid from Nuveen.

Schroders announced last week that it had agreed to be taken over by US investment manager Nuveen in a £9.9bn deal. Nuveen - which is part of the Teachers Insurance and Annuity Association of America - will pay 612p per share.

RBC said in a research note on Monday that Nuveen's bid is likely to succeed, and with shares trading close to the implied offer value, it sees limited remaining upside, hence the rating downgrade.

The price offered by Nuveen comprises a cash consideration of 590p a share and permitted dividends of up to 22p per share. The cash consideration is a 29% premium to the closing share price on Wednesday, a day before the offer was announced.