In this article, we will list the 5 Best M&A Target Stocks to Buy Now. Please visit 10 Best M&A Target Stocks to Buy Now if you’d like to see an extended list.
We selected M&A target stocks by reviewing companies with recent, credible takeover signals, including reported sale processes, activist pressure for strategic alternatives, private-equity interest, strategic-buyer interest, or board-level review activity. We finally ranked these stocks in descending order by short percentage of float, sourced from stockanalysis.com.
5. Papa John’s International, Inc. (NASDAQ:PZZA)
Short Percentage of Float: 12.18%
Papa John’s International, Inc. (NASDAQ:PZZA) is one of the best M&A target stocks to buy now.
Papa John’s International, Inc. (NASDAQ:PZZA) remains in play after Reuters reported on April 15 that the pizza chain was moving closer to a possible sale. The report said Qatari-backed Irth Capital had offered $47 per share in March, with backing from Brookfield Asset Management, after a prior joint bid with Apollo Global Management fell through last year. Reuters also reported that Irth had been conducting due diligence over the past month, while sources cautioned that negotiations were still ongoing and no agreement was guaranteed.
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The M&A setup comes as Papa John’s works through softer U.S. demand, which could make a take-private structure more attractive for buyers willing to underwrite a turnaround away from public-market pressure. On May 7, the company reported that first-quarter 2026 global systemwide restaurant sales fell 3%, while global comparable sales declined 4%. North America comparable sales decreased 6.4%, although international comparable sales increased 3.6%. Diluted EPS came in at $0.21, while adjusted diluted EPS was $0.32.
Papa John’s International, Inc. (NASDAQ:PZZA) operates and franchises pizza restaurants across North America and international markets, offering pizza, sides, desserts, and related delivery and carryout services.
4. Mattel, Inc. (NASDAQ:MAT)
Short Percentage of Float: 6.62%
Mattel, Inc. (NASDAQ:MAT) is one of the best M&A target stocks to buy now.
Mattel, Inc. (NASDAQ:MAT) moved into the M&A spotlight after Reuters reported on May 8 that Southeastern Asset Management, which owns about 4% of the toy company, urged CEO Ynon Kreiz to consider strategic alternatives, including taking Mattel private or pursuing a sale to Hasbro. The investor argued that weak traditional toy demand and supply-chain pressures called for bolder action, while also pointing to Mattel’s intellectual property portfolio as an asset that could hold more value under a different ownership structure. Southeastern also suggested that a media company could be a potential buyer because of Mattel’s brands and entertainment potential.
The takeover angle is supported by Mattel’s mix of exposure to a challenged toy market and valuable owned franchises. Reuters noted that Mattel has been pushing deeper into entertainment after the success of the “Barbie” movie and has been expanding its IP strategy around properties such as “Masters of the Universe.” Jefferies analysts reportedly said a Hasbro transaction appeared unlikely, but the investor pressure could still push Mattel toward steps aimed at improving shareholder value.
Mattel, Inc. (NASDAQ:MAT) is a toy and entertainment company whose brand portfolio includes Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO, Masters of the Universe, Matchbox, Monster High, and Polly Pocket.
3. Commvault Systems, Inc. (NASDAQ:CVLT)
Short Percentage of Float: 5.34%
Commvault Systems, Inc. (NASDAQ:CVLT) is one of the best M&A target stocks to buy now.
Commvault Systems, Inc. (NASDAQ:CVLT) became a live takeover candidate on April 10, when Reuters reported that the data-protection software company was exploring a potential sale after receiving takeover interest from multiple parties. The report said Commvault was working with Goldman Sachs to evaluate its options, with interest coming from both private equity firms and strategic buyers. Thoma Bravo was among the potential buyers that had expressed interest, and Reuters also reported that the firm had made an earlier offer for the company.
The M&A case is supported by Commvault’s position in data resilience, backup, recovery, and cyber-threat response, areas that remain strategically important for enterprises even as software valuations have faced pressure. On April 28, Commvault reported fiscal fourth-quarter 2026 revenue of $312 million, up 13% year over year, while full-year revenue rose 19% to $1.184 billion. Total ARR increased 21% to $1.122 billion, subscription revenue rose 30% for the year, and SaaS revenue grew 52%, giving potential buyers a cleaner recurring-revenue profile to underwrite.
Commvault Systems, Inc. (NASDAQ:CVLT) provides cyber resilience, data protection, backup, recovery, and cloud data management software for enterprises across hybrid, cloud, and on-premise environments.
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.
1. SBA Communications Corporation (NASDAQ:SBAC)
Short Percentage of Float: 3.27%
SBA Communications Corporation (NASDAQ:SBAC) is one of the best M&A target stocks to buy now.
SBA Communications Corporation (NASDAQ:SBAC) became a fresh M&A candidate after Reuters reported on April 2 that the wireless tower operator was exploring options, including a potential sale, after receiving preliminary takeover interest. The report, which cited Bloomberg News, said the company’s shares rose 14% in afternoon trading after the potential-sale angle became public. Reuters also noted that SBA had a market value of $18.15 billion as of the prior close, making it a large but still plausible infrastructure deal candidate.
The appeal is straightforward: SBA owns and operates wireless communications infrastructure, a type of asset that can attract infrastructure funds and strategic buyers because of long-term leasing demand from mobile carriers. The company generates revenue from two main businesses, site leasing and site development services, and describes itself as a leading owner and operator of wireless communications infrastructure across the Americas and Africa.
SBA Communications Corporation (NASDAQ:SBAC) is a real estate investment trust that owns and operates wireless infrastructure, including towers and related communications sites, serving wireless service providers across multiple markets.
While we acknowledge the potential of SBAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SBAC and that has 100x upside potential, check out our report about the cheapest AI stock.
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