On Tuesday morning a Stifel Nicolaus analyst downgraded SFX‘s stock rating to “sell,” cutting its price target in half from $2 to $1. This cause the EDM promotion company’s shares to fall 23.3 percent to $1.02.
The downgrade was due to chairman and CEO Robert Sillerman‘s failure to meet a deadline to secure financing for his scheduled acquirement of SFX. The company claims that Sillerman will still be taking over the coming, but now wants to pay less than his original bid of $5.25 per share due to the stock’s decline.
The Stifel analyst does not believe another bid on the company’s shares will appear anytime soon.