MLI - Most likely large-cap and small-cap merger candidates -BofA

BofA Securities screened for stocks with the the characteristics most likely to attract suitors, both in the large- and small-cap universes. For S&P 500 (SP500) (SPY) targets, BofA: Screens based on its preferred valuation metric of free cash flow to enterprise value (FCF/EV) for those trading below the universe median. Excludes Financials (XLF) and managed care companies. Limits market cap to $15B or below and requires a history of stable earnings. With growth a motivation, the screen is limited to companies with long-term growth rates above the universe median. The top large-cap M&A candidates are: BorgWarner (NYSE:BWA), FCF/EV 3.4%, consensus LTG 28% Advance Auto Parts (AAP), 3.6%, 15.3% Bath & Bod Works (BBW), 5.9%, 16.9% Ralph Lauren (RL), 6.7%, 80.2% Tapestry (TPR), 7.5%, 17.2% Under Armour (UAA), 6%, 56.3% DaVita (DVA), 5.2%, 11.7% Henry Schein (HSIC), 4.5%, 16.8% Bio-Rad Labs (BIO), 2.8%, 13.9% Charles River Labs (CRL), 2.4%, 14.5% Huntington

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Most likely large-cap and small-cap merger candidates -BofA