Wall Street expects Trump presidency will unlock deal-making

Published On Nov 7, 2024, 11:00 AM

Wall Street anticipates a surge in mergers and acquisitions (M&A) activity following Donald Trump's presidential victory, citing a more favorable regulatory environment for deal-making. Analysts expect reduced scrutiny and lighter regulations, particularly benefiting the financial and pharmaceutical sectors. Companies like Kroger and Tapestry are likely to see their merger attempts gain traction under a Trump administration, especially after prior challenges posed by the Biden administration. While sectors such as retail and healthcare are optimistic, technology companies may still face hurdles due to Trump's historical opposition to Big Tech.

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Stock Forecasts

KRView KR chart on TradingView

Positive

With a more favorable regulatory landscape expected under Trump's presidency, sectors such as financial services and pharmaceuticals are set to experience increased M&A activity. Companies like Kroger and Tapestry could see their mergers approved more easily, generating potential investment opportunities in these stocks. Additionally, the broader market may benefit from this shift as investor confidence grows with anticipated economic growth.

PFEView PFE chart on TradingView

Positive

Pharmaceutical companies, particularly those focusing on M&A like Tapestry and grocery retailers such as Kroger, are likely to thrive in a lighter regulatory climate. As antitrust scrutiny diminishes, investments in large cap pharmaceuticals could see an uplift due to favorable merger approvals.

XLFView XLF chart on TradingView

Positive

Investors might consider engagement in the financial sector, specifically in regional banks which are poised for acquisitions as they scale. The reduction in regulatory barriers may enhance the attractiveness of these financial institutions as potential investment opportunities.

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