5 Best M&A Target Stocks to Buy Now

2. KBR, Inc. (NYSE:KBR)

Short Percentage of Float: 3.95%

KBR, Inc. (NYSE:KBR) is one of the best M&A target stocks to buy now.

KBR, Inc. (NYSE:KBR) moved into the M&A spotlight after Reuters reported on April 29 that activist investor Engine Capital had built a roughly 2% stake in the company and was urging the engineering contractor to explore a sale. Citing a Wall Street Journal report, Reuters said Engine argued that KBR’s businesses were undervalued in the public market and that the company’s planned separation could create new risks and tax difficulties.

Engine’s letter said KBR could attract both private-equity and strategic buyers and command between $48 and $55 per share in a transaction, compared with a closing share price of $36.02 at the time cited by Reuters. The activist argued that a full-company sale would give shareholders a clearer and more immediate realization of value, reduce execution risk, eliminate additional standalone costs, and allow a buyer to optimize the business under its own management structure. Reuters also noted that KBR had previously drawn activist interest from Irenic Capital Management in 2024.

KBR, Inc. (NYSE:KBR) provides science, technology, engineering, mission-support, logistics, and sustainable technology solutions to government and commercial customers.