These four firms are likely to splurge on M&As, analysts say

Some stocks remain extremely undervalued.

Market conditions are ripe for a massive wave of mergers and acquisitions. A report by UOB Kay Hian noted that Singapore will see more M&A deals in coming months, after seeing a total of 15 such transactions within the first half of the year.

The recent pick-up in privatisation and M&As suggests selective deep value, particularly in the mid cap space," the report noted.

The report highlighted four companies with M&A potential, namely, Ascendas Hospitality Trust, China Aviation Oil, Global Logistics Properties, and Innovalues.

"Looking ahead, we see the potential for more M&A deals as some stocks remain significantly undervalued and selected sectors such as logistics may see consolidation. Also, companies with strong financials could also look for transformative M&As to expand their global presence or to solidify their market share," UOB Kay Hian said.