In wake of Galenica buying out Relypsa Inc (NASDAQ:RLYP) for a $1.53 billion deal of $32 per share, Cantor analyst Mara Goldstein has downgraded shares from Buy to Hold, while slashing the price target from $41 to $32 per share.

As Galenica proceeds to take over Relypsa shares, Goldstein thinks the valuation of the deal could be outbid by another corporate suitor, but doesn’t see it as probable. Goldstein weighs in, “While the $32 takeout is lighter than we would like to have seen, below our $41 price target, we think that “cash in hand” is likely to be sufficient to have investors tender shares, as we believe the likelihood of another suitor is modest, in our view.” Currently, the purchase price is seven times that of the analyst’s forecast for 2018.

A key part of this acquisition to keep in mind is that Relypsa owns pipeline drug, Veltassa. While it’s not certain to be a significant commercial success yet, Goldstein does have hope that this could yield a profitable deal for Galenica in the long-term.

As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks, Mara Goldstein is ranked #3,688 out of 4,079 analysts. To date, she has a success rate of 42% combined with an average loss of 3.8% per recommendation she makes.

TipRanks analytics indicate RLYP to be a Moderate Buy. Of 13 analysts polled in the past 3 months, 46% rate a Buy, whereas the other 54% maintain a Hold. The 12-month average price target for Relypsa is $34.20, with a slight 7% upside from where shares last closed.