Acquisition is the name of the game these days, as plenty of multi-billion US companies are looking for smaller companies to take over. Morgan Stanley recently released a list of companies that are on the takeover target and their stocks to watch out for.
According to their report, roughly 44 companies could be looking at a takeover deal this year. Among the factors considered are dividend yield, price-to-book ratio, debt-to-asset ratio, market cap rank, sector and liquidity.
Morgan Stanley Stock Takeover List
In the energy sector, the companies included are Newfield Exploration Co., Sandridge Energy Inc., and Tidewater Inc.
In the materials sector, the companies included are Cliffs Natural Resources Inc., Axiall Corp., Domtar Corp., and Royal Gold Inc.
In the consumer discretionary sector, they had Sinclair Broadcast Group Inc., Wendy’s Co., Tempur Sealy International Inc., Brinker International Inc., Bally Technologies Inc., DreamWorks Animation Inc., J.C. Penney Co., and American Eagle Outfitters Inc.
In the consumer staples industry, Morgan Stanley listed Ingredion Inc., Hain Celestial Group Inc., Hillshire Brands Co., and Whitewave Food Co.
Only Nationstar Mortgage Holdings Inc. was mentioned in the financials sector. In the health care industry, they had Celgene Corp., Express Scripts Holding Co., WellPoint Inc., Regeneron Pharmaceuticals Inc., Alexion Pharmaceuticals Inc., Aetna Inc., Cigna Corp., Becton Dickinson & Co., and Cerner Corp.
The companies for takeover in the tech sector are Brocade Communications Systems Inc., On Semiconductor Corp., Tibco Software Inc., SunPower Corp., Ingram Micro Inc., Jabil Circuit Inc., SunEdison Inc., Teradyne Inc., Arris Group Inc., and NeuStar Inc.
Lastly, telecom companies included in Morgan Stanley’s list are Crown Castle International Corp., SBA Communications Corp., Level 3 Communications Inc., Windstream Holdings Inc., and Frontier Communications Corp.
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