MORGAN STANLEY: These 9 tech companies could be takeover targets

caption
Christian Chabot CEO of Tableau Software waits, for his company’s stock to begin trading on the floor of the New York Stock Exchange
source
Thomson Reuters

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

source
Markets Insider

Ticker: NCR

Price as of March 17, 2017: $44.61

Market Cap: $5.31 billion

Industry: Computer & Peripherals

Source: Morgan Stanley


Nuance Communications

source
Markets Insider

Ticker: NUAN

Price as of March 17, 2017: $17.02

Market Cap: $4.94 billion

Industry: Software

Source: Morgan Stanley


Cavium

source
Markets Insider

Ticker: CAVM

Price as of March 17, 2017: $72.165

Market Cap: $4.78 billion

Industry: Semiconductors & Semiconductor Equipment

Source: Morgan Stanley


Zebra Technologies

source
Markets Insider

Ticker: ZBRA

Price as of March 17, 2017: $91.16

Market Cap: $4.70 billion

Industry: Electronic Equipment, Instruments & Components

Source: Morgan Stanley


Coherent

source
Markets Insider

Ticker: COHR

Price as of March 17, 2017: $195.69

Market Cap: $4.63 billion

Industry: Electronic Equipment, Instruments & Components

Source: Morgan Stanley


Wex

source
Markets Insider

Ticker: WEX

Price as of March 17, 2017: $107.21

Market Cap: $4.51 billion

Industry: IT Services

Source: Morgan Stanley


Cypress Semiconductor

source
Markets Insider

Ticker: CY

Price as of March 17, 2017: $13.98

Market Cap: $4.44 billion

Industry: Semiconductors & Semiconductor Equipment

Source: Morgan Stanley


Teradata

source
Markets Insider

Ticker: TDC

Price as of March 17, 2017: $31.00

Market Cap: $4.04 billion

Industry: IT Services

Source: Morgan Stanley


Tableau Software

source
Markets Insider

Ticker: DATA

Price as of March 17, 2017: $49.47

Market Cap: $3.73 billion

Industry: Software

Source: Morgan Stanley


See Also:

Here’s how virtually everything you can invest in is performing this year