Alkermes, DaVita, Jabil, Ralph Lauren, among potential M&A candidates – BofA
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Mergers and acquisitions are expected to increase under a Republican president, especially as President-elect Donald Trump is expected to replace Federal Trade Commission Chair Lina Khan, who has blocked several deals during the Biden administration.
Bank of America’s banks team is particularly bullish on M&A in the sector, as bank M&A has been >50% higher under Republican administrations than Democrats, BofA strategists led by Jill Carey Hall wrote in a note on Thursday. There may also be an M&A increase in staples, though software may not see much of an increase as there has been a shift in strategic focus on data/AI.
Several small-cap sectors have led the index when M&A has picked upped, including health care, technology, staples and utilities, according to the BofA note.
The BofA strategists screened for small cap “value” potential M&A candidates includes:
- Halozyme Therapeutics (HALO)
- Alkermes (ALKS)
- American Public Education (APEI)
- Apogee Enterprises (APOG)
- Atkore (ATKR)
- Bread Financial (BFH)
- Collegium Pharmaceuticals (COLL)
- Commercial Metals (CMC)
- Consolidated Water (CWCO)
- Ennis Inc. (EBF)
- Heidrick & Struggles (HSII)
- Otter Tail (OTTR)
- Photronics (PLAB)
- Quanex Building Products (NX)
- Scorpio Tankers (STNG)
- Vishay Precision (VPG)
BofA also screened for small cap “growth-at-any-price” M&A. The candidates include:
- Amicus Therapeutics (FOLD)
- Chart Industries (GTLS)
- Flywire (FLYW)
- Insmed (INSM)
- Lantheus (LNTH)
- PROCEPT BioRobotics (PRCT)
- Pulmonx (LUNG)
- RxSight (RXST)
The BofA strategists also screened for large cap M&A. The list includes: