
Private equity firms are targeting public companies with strong cash flow, low valuations, and clear improvement potential for leveraged buyouts (LBOs). With improved financing conditions and elevated market volatility compressing valuations, firms see attractive entry points. Stocks like Bath & Body Works, GitLab, ESAB, and Alignment Healthcare currently fit this profile, offering potential for operational improvements and growth under private ownership. Investors holding such stocks may benefit from both organic gains and buyout premiums if deals occur.