Tuesday, March 21, 2017

MORGAN STANLEY: These 9 tech companies could be takeover targets

Getco Securities specialist traders work at the booth that trades Tableau Software on the floor of the New York Stock Exchange, in this May 17, 2013 file photo. REUTERS/Brendan McDermid

Takeover activity has cooled down a bit in recent months, but there are still some big deals on the horizon. 

In a note to clients sent March 20, Morgan Stanley updated its Acquisition Likelihood Estimate Ranking Tool (ALERT model), a model that tracks "stock characteristics, cohort membership, and data regarding offers to forecast probabilities that stocks receive tender offers in the coming 12 months."

The update found that the percentage of the 1,000 largest companies receiving takeover offers fell from 5.1% in June 2016 to 3.9% in December 2016 and that stocks with "poor momentum, high gross margins and historically cheap forward P/E received more offers."

In tech sector, M&A activity was relatively flat during that time.

Here's a list of the nine tech companies that Morgan Stanley says are most likely to receive takeover offers:

NCR Corp

Ticker: NCR

Price as of March 17, 2017: $44.61

Market Cap: $5.31 billion

Industry: Computer & Peripherals

Source: Morgan Stanley 

Nuance Communications

Ticker: NUAN

Price as of March 17, 2017: $17.02

Market Cap: $4.94 billion

Industry: Software

Source: Morgan Stanley 


Ticker: CAVM

Price as of March 17, 2017: $72.165

Market Cap: $4.78 billion

Industry: Semiconductors & Semiconductor Equipment

Source: Morgan Stanley 

See the rest of the story at Business Insider

March 21, 2017 at 05:17PM

from Jonathan Garber