As previously reported, Craig-Hallum downgraded Thermon Group (THR) to Hold from Buy with a $51 price target following announced combination with Ceco Environmental (CECO) for $2.2B or 17-times EBITDA. The firm is looking for more color in imminent proxy filing but views deal as most likely path forward, and while it has seen a path to a larger stock, says acquisition is attractive for Thermon as it provides greater access to capital to take advantage of growth opportunities, as well as broader access to global markets and manufacturing, while also being nicely complementary to Ceco Environmental.
