On January 22, 2019, we said the following of Gluskin Sheff:
“Gluskin Sheff has an expected price range of $13.46-$48.08 by 2021-2023. However, the absence of a dividend increase since 2016 and a decline below the undervalued level suggest that, at best, GS.TO can only increase to the “fair value” target price under favorable conditions.”
On March 22, 2019, Onex Corporation (ONEX.TO) announced that they would acquire Gluskin Sheff (GS.TO) for $14.25. Below are the final Altimeter and target ranges for GS.TO.
Overvalued and Undervalued levels since 2006 are as follows:
Our take on the acquisition is that Onex got a bargain with their well timed purchase. We will now track Onex Corp. (ONEX.TO) with updated target prices going forward.