1111 ET - An expected rebound in M&A activity after two weak years has yet to materialize so far in 2025, Oppenheimer analysts Chris Kotowski and Kevin Tripp say in a research note. Announced M&A is up just 2.4% year-to-date, they say. Current uncertainty over tariffs, cuts to government spending and "general upheaval of 80 years of trade and security agreements," are all expected to keep M&A activity constrained, the analysts say. There had been optimism entering the new year that there would be pent-up demand for M&A after a "relatively moribund" 2023 and 2024 for dealmaking volumes, they say. Interest rates had peaked, credit spreads had tightened and stock valuations were generally strong, further fueling the optimism, the analysts add. Given the scenario Oppenheimer downgrades Carlyle Group, Goldman Sachs and Jefferies to perform ratings. (dean.seal@wsj.com)
(END) Dow Jones Newswires
March 19, 2025 11:11 ET (15:11 GMT)
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