Companies are growing less keen on mergers, potentially leaving more cash to be given to shareholders through share buybacks, special dividends and other means, Credit Suisse strategists say in a note.
Only 48 percent of the European corporates polled by Credit Suisse this month see M&A as a priority, down from its previous survey and “suggesting an increased likelihood of enhanced redistributions”.
Credit Suisse picks a basket of 20 stocks which it reckons are likely candidates for such capital returns and also look attractive on other measures.
These are Alfa Laval, Atlas Copco, Berkeley Group , Compass Group, ENI, L‘Oreal, Next, Novartis, Paddy Power, Publicis, Richemont, Roche, Ryanair, SAP, Sonova, Swatch , Vivendi, Wolseley, WPP and Yara.
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