Nuance Communications, Inc. (NUAN)

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Morgan Stanley: 3 ‘Strong Buy’ Takeover Targets in Tech

Harriet Lefton April 25, 2018 0 Comments

Morgan Stanley has identified tech companies most likely to get acquired in the next 12 months. Takeovers are on the rise thanks to tax cuts, which frees up cash for deals according to the bank. Indeed, acquisition intensity increased to 3.2% in Q1 from 2.5% in the previous quarter. Why does this matter? Well, share prices can soar when a takeover deal is announced- meaning that there is big value in identifying takeover targets correctly.

From the list, we used TipRanks to identify the top stocks with a bullish Street outlook. All three of the stocks below boast a ‘Strong Buy’ analyst consensus rating. The advantage of these three stocks is that they represent compelling investing opportunities- even if a takeover doesn’t materialize.

As for the methodology, “Our model, ALERT (Acquisition Likelihood Estimate Ranking Tool), combines stock characteristics, cohort membership, and data regarding offers to forecast probabilities that stocks receive tender offers in the coming 12 months,” revealed Brian Hayes, the firm’s global head of quantitative research.

So with this in mind, let’s take a closer look now:


2. Nuance Communications (NASDAQ:NUAN)
Nuance- the company that provides the tech for Apple’s Siri, boasts 100% Street support right now. Analysts are projecting, on average, 39% upside potential from current levels. One of these analysts is Oppenheimer’s Shaul Eyal. This top 100 analyst sees big expansion potential for NUAN and explains why here:

The speech market remains relatively under-penetrated, providing significant opportunity to expand market reach. As a stock, NUAN should benefit from the company’s market-leading position and nascent opportunity in speech solutions.

Plus the appointment of a new CEO Mark Benjamin will bring new blood to push NUAN’s long-term strategy. Mark Benjamin is replacing former CEO Paul Ricci.
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https://blog.tipranks.com/morgan-stanley-3-strong-buy-takeover-targets-tech/

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