Investment bank Goldman Sachs (GS) has named the companies it feels are most likely to be involved in a merger or acquisition (M&A) this year.
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Goldman has put out its list of M&A candidates as Wall Street gears up for a deals revival under the new administration of U.S. President Donald Trump. Analysts at Goldman Sachs say they expect a boom in M&A activity this year.
Companies and stocks that may benefit from M&A this year include video game maker Electronic Arts (EA), microchip designer On Semiconductor (ON), alcoholic beverage concern Molson Coors (TAP), and online travel booking platform TripAdvisor (TRIP).
Betting Odds
According to Goldman Sachs, the number of completed M&A deals in the U.S. this year could rise by 25%, and the aforementioned companies have a 30% to 50% chance of facing a merger or takeover offer within the next 12 months.
In the case of Electronic Arts, Goldman Sachs says the company behind popular video game titles such as The Sims, Madden NFL Football, and Immortals could become a takeover candidate as the industry undergoes further consolidation. In late 2023, Microsoft (MSFT) acquired video game maker Activision Blizzard for $68.7 billion.
Other potential M&A candidates identified by Goldman Sachs include SolarWinds (SWI) and Magnolia Oil and Gas (MGY). GS stock has risen 76% in the last 12 months.
Is GS Stock a Buy?
The stock of Goldman Sachs has a consensus Strong Buy rating among 16 Wall Street analysts. That rating is based on 12 Buy and four Hold recommendations assigned in the last three months. The average GS price target of $669.50 implies 1.35% upside from current levels.
