Janney analysts downgraded the stock of water and air purification products provider Calgon Carbon Inc. to sell from neutral Thursday, after the company was acquired by Japan’s Kuraray Co. Ltd. in a deal with an equity value of $1.1 billion. The deal offers a roughly 60% premium, and the stock shot up about 61% in early trade. “Our quick thoughts are that Kuraray overpaid for shares,” analysts wrote in a note. “Additionally, we see risk given that CCC has a specialty carbon business that supplies the U.S. military with gas masks and other personal protection items, so a foreign buyer could be an issue for U.S. government approval.” Janney is recommending investors sell the stock and buy Rexnord Corp. or Mueller Water Products Inc. , which they described as their best value picks in the industrial space. Rexnord shares were down slightly, while Mueller shares were up 0.1%. The S&P 500 was flat.
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