NEW YORK (TheStreet) -- Shares of Intersil (ISIL) were higher in early morning trade on Wednesday after the semiconductor company agreed to a $3.2 billion takeover offer from Japanese chipmaker Renesas Electronics yesterday.
Deutsche Bank lowered its rating on Intersil stock to "hold" from "buy" this morning following the announcement.
Additionally, the firm maintained its $22.50 price target on the shares as it matches Renesas' $22.50 per share bid for the company.
The firm said that Milpitas, CA-based Intersil now faces risks if the acquisition were to be abandoned as well as slower top-line growth as the company transitions.
"We expect the deal to close as intended in the first half of 2017, and we believe another bidder emerging is unlikely," Deutsche Bank noted.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: ISIL