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Digging for more value in Badger? Add to ...

Shares of digging company Badger Daylighting have already shot above the $20.50 a share takeover agreement disclosed Wednesday with Clean Harbors Inc. of the U.S., but a prominent analyst says it's unlikely investors in Badger will see more money than is already on the table.

That's the view from Canaccord analyst Sara Elford, who regularly shows up in rankings of the country's top stock pickers. She suggests there's not much chance of more juice for Badger shareholders, given that the company has been well shopped.

"The board started a formal process roughly a year ago, which suggests other potential suitors had every opportunity to 'kick the can,'" she wrote. "The strategic fit with Clean Harbors is excellent, and while it could easily justify paying more, in our view, the odds of a competing bid are low (less than 10%). Badger's shareholder base is also likely too diverse to band together to successfully fight for more, but we can't rule this out either just yet."

What's more, the price is a full valuation for Badger. Ms. Elford's discounted cash flow model "conservatively values Badger at $20.25, in line with the Clean Harbor's bid" and the average analyst target price on Badger is $21.25. (There are only two analysts who follow the stock.)

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