Goldman says these stocks could be taken over as M&A surges this year

This new trading year could bring a boom in mergers and acquisitions, and some stocks may be poised to benefit. According to Goldman Sachs, the number of completed M & A transactions in the U.S. could rise by 25% in 2025. That projection would be higher than the level of completed transactions seen in both 2023 and 2024. This comes as Wall Street has been preparing for a revival in M & A activity with the inauguration of President-elect Donald Trump, whose second term is expected to be more business friendly. In light of that forecast, Goldman has screened for stocks that it thinks have a chance of undergoing a merger. In particular, the firm has broken out stocks into two groups, with one cohort including names that have a 30% to 50% chance of facing a merger and the other including those that have a 15% to 30% chance of a merger. Here are some names that came up. Biopharmaceutical company Insmed made the cut among the names that Goldman thinks has a 30% to 50% chance of a merger. The stock is also coming off of a monster year, posting a nearly 123% rise in 2024. That compares to the S & P 500’s gains of more than 23% last year. In the new year, analysts are entirely bullish, seeing more big gains ahead. In fact, all 17 of the analysts covering it on the Street have a strong buy or buy rating, according to LSEG. Consensus price targets suggest roughly 29% upside from Tuesday’s close. Electronic Arts made it to Goldman Sachs’ list, as the firm sees a 15% to 30% likelihood of the video game publisher going through a merger or acquisition. The stock advanced about 7% in 2024. Wall Street sees further potential upside for the stock, with consensus price targets calling for gains of nearly 15% from current levels, per LSEG. Analysts are split on the name, however, with 15 out of 29 rating it hold. The remaining 14 rate Electronic Arts as buy or strong buy. Goldman also thinks Unity Software has a 15% to 30% probability of a merger, and it’s not alone. Earlier this month, Wolfe Research also listed the stock as one of its top software picks that could be primed for consolidation in 2025. In all, half of the 30 analysts covering Unity rate it hold, while 13 deem it a buy or strong buy, according to LSEG. Consensus price targets call for 2% upside from current levels. Shares of the stock soared around 9% in the first trading session of this year after online personality Roaring Kitty posted a cryptic gif on X . That follows a down year for the stock, as it plunged 45% in 2024.