Merger Synergies and Analyst Forecasts

How do analysts respond to company forecasts during mergers?

Dr Ahmad Ismail from the American University of Beirut analyses over 2,000 U.S. takeovers to find out. His research shows that analysts are more likely to revise earnings upwards when companies forecast large cost-saving synergies, and when led by level-headed CEOs. These revisions often predict real market gains, pointing to a clear investment signal.

Read more research: researchgate/Ahmad-Ismail