Food-delivery firm Grubhub, industrial heavyweight 3M and consumer-products giant Colgate-Palmolive are all vulnerable targets for activist investors, according to the shareholder-activism intelligence firm Activist Insight.
It also predicted that eBay EBAY, -3.25% would come under pressure, as it has from Starboard and fellow activist Elliott — founded by billionaire hedge-fund manager Paul Singer — eventually agreeing to a strategic review. Activist shareholders could push for the company to separate its four business segments into two or three companies. A shift to focus on health care and consumer, ditching industrial and transportation units, could help reduce debt.Since the merger between Dentsply and Sirona at the beginning of 2016, the combined dental giant has suffered losses and struggled to generate revenue growth.
The stock fell further at the end of last month as the company missed earnings expectations and trimmed its full-year outlook. Despite the stock’s impressive run, Activist Insight said the company could be vulnerable to attack from an activist investor.