MORGAN STANLEY: These 7 brand name companies could be takeover targets

pulse

March 20, 2017 6:17 PM

Merger activity will continue to be relatively strong in 2017. Here are seven big name companies that could be a takeover target in 2017.

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ut a note out March 20 by a group of equity strategists at Morgan Stanley said that M&A activity will continue to be above "the long term median" over the course of the next 12 months.

"The fraction of the largest 1000 stocks receiving tender offers in the prior 12 months declined from 5.1% in June 2016 to 3.9% in December 2016," the bank said.

"This rate is still above the post-1983 median of 3.0%," the bank added.

Using their model, ALERT (Acquisition Likelihood Estimate Ranking Tool), the bank identified some of the key characteristics of firms that received takeover offers in the last 12 months.

These firms, according to Morgan Stanley, "were far more likely to have underperformed their sector peers and had weak price momentum."

Morgan Stanley used that information to produce a list of companies that have a high likelihood of receiving a takeover offer in the next 12 months.

Following are seven companies from Morgan Stanley's list that you will likely recognize.

Domino's Pizza

Ticker: DPZ

Market Cap: $8.83 billion

List Price as of 3/17: $185.03

Industry: Hotel, Restaurants & Leisure

Michaels

Ticker: MIK

Market Cap: $4.31 billion

List Price as of 3/17: $22.27

Industry: Specialty Retail

AMC Networks

Ticker: AMCX

Market Cap: $3.98 billion

List Price as of 3/17: $58.54

Industry: Media

Regal Entertainment Group

Ticker: RGC

Market Cap: $3.50 billion

List Price as of 3/17: $22.49

Industry: Media

Tribune Media

Ticker: TRCO

Market Cap: $3.38 billion

List Price as of 3/17: $37.45

Industry: Media

Wendy's

Ticker: WEN

Market Cap: $3.27 billion

List Price as of 3/17: $13.45

Industry: Hotel, Restaurants & Leisure

Jack in the Box

Ticker: JACK

Market Cap: $3.09 billion

List Price as of 3/17: $99.7

Industry: Hotel, Restaurants & Leisure

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