These stocks could be taken over in the next 12 months, Goldman speculates

Deal activity is poised to rebound as the past 16 months’ rise in interest rates peaks, and as capital frees up there are dozens of potential candidates that could be bought out in the next wave of mergers and acquisitions, according to Goldman Sachs. The Wall Street investment bank polled its analysts about the probability of M & A activity of the companies under its research coverage. Analysts were tasked with assigning a “1” ranking to those possible targets if the probability was 30%-50% of M & A activity in the next 12 months. Companies with a medium probability of 15%-30% received a ranking of “2.” In a tight credit environment and amid concern about a looming recession, M & A activity saw a sluggish first half of the year. A total of 3,828 deals were reached around the world in the second quarter, marking a 30% decline from the same period in 2022, according to data from S & P Global Market Intelligence. The market is expected to open up as interest rates stop rising, and the stocks on Goldman’s list could have the potential to be taken over once credit becomes more available. A number of consumer names made the list, including Molson Coors Beverage , Olaplex , Bellring Brands and Simply Good Foods . Citi recently opened a positive catalyst watch on Molson Coors, saying the beverage maker is a beneficiary throughout the summer of the Bud Light controversy. Health care stocks Maravai LifeSciences , Quanterix Corp ., Enhabit also have a relatively high likelihood of being M & A targets in the next 12 months, according to Goldman analysts.

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