Analysts and investors pay close attention to potential takeover/leveraged buyout (LBO) targets because when a company announces that it is being taken over, its stock usually jumps in price to reflect the takeover premium being paid for the company.
We compiled a list of potential takeover/LBO targets from various sources including iStockAnalyst and Seeking Alpha. We then screened this universe for stocks with current "Buy" ratings from Canaccord Genuity, indicating that their analysts believe these stocks will soon outperform.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these companies are attractive takeover candidates? Use this list as a starting point for your own analysis.
List sorted by ratings date.
1. IAC/InterActiveCorp. (IACI): Engages in the Internet business in the United States and internationally. Market cap of $3.45B. Takeover/LBO rumor sourced from Seeking Alpha. On 12/07/2011, Canaccord Genuity had a Buy rating on the stock. The stock has gained 49.64% over the last year.
2. Finish Line Inc. (NASDAQ:FINL): Operates as a mall-based specialty retailer in the United States. Market cap of $1.07B. Takeover/LBO rumor sourced from Seeking Alpha. On 09/07/2011, Canaccord Genuity had a Buy rating on the stock. The stock is a short squeeze candidate, with a short float at 11.4% (equivalent to 7.39 days of average volume). The stock has had a couple of great days, gaining 8.03% over the last week.
3. Weatherford International Ltd. (NYSE:WFT): Provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells to independent oil and natural gas producing companies worldwide. Market cap of $12.38B. Takeover/LBO rumor sourced from Seeking Alpha. On 04/29/2011, Canaccord Genuity had a Buy rating on the stock. The stock has had a couple of great days, gaining 7.67% over the last week.
*Data sourced from Yahoo! Finance, all other data sourced from Finviz. To access the complete list of takeover targets, click here.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.