LONDON (ShareCast) - (Sharecast News) - Deutsche Bank downgraded Rotork on Friday to 'hold' from 'buy' and lifted the price target to 503p from 400p after it agreed to be bought by Swiss engineering firm ABB in a £4.1bn deal.
Rotork announced on Thursday that it had agreed to be taken over by ABB, which will pay 506p per share in cash. This comprises 503p and a dividend of up to 3p. Deutsche said the offer "looks compelling".

"We've long argued the value within Rotork has been unrecognised, especially under Growth+ during which EPS has grown more than 50% and the shares have until today been negative under the CEO's tenure," DB said.

"The recent relative underperformance on O&G concerns appeared unsustainable, particularly considering the relative decoupling of group EBIT to O&G declines."

At 1336 BST, Rotork shares were down 0.1% at 484.60p, having rocketed a day earlier on news of the bid.

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