Raymond James & Associates analyst John Mahoney thinks so, and he bets the Tampa company does, too.
"It's an industry that needs to be consolidated," he says, "and I think they'd be very wise to not let the ship leave without them."
Sykes, which provides outsourced customer support for clients such as Microsoft, Delta Air Lines and Procter & Gamble via a global network of 44 call centers, has several things going for it, Mahoney says.
It has lots of cash. It generates significant EBITDA, or earnings before interest, taxes, depreciation and amortization. Its client relationships are strong. And in an industry swiftly moving its call centers overseas, he says, Sykes is one of the farthest along.
Who might bite? Large outsourcers that want to bolster their offshore call networks, like EDS or Accenture, Mahoney says.
Of course, it takes two to tango, and Sidoti & Co. analyst Michael Coady doesn't think Sykes is particularly interested in being acquired.
"All indications are that they're trying to build the business," he says. "(Chief executive) John Sykes owns a good chunk of the shares and is pretty well off. It's not like he needs an exit strategy."
Sykes did not respond to requests for comment. But many outside observers think the elder Sykes is preparing son Chuck, recently promoted to chief operating officer, to replace him.
Coady doesn't disagree with Mahoney's premise that Sykes would be a catch for a big company like IBM. Sykes owns its facilities outright, has no debt and, because it does little if any outbound calling, is not threatened by the new federal do-not-call law, he says.
Even Mahoney must not think a takeover offer is coming soon. He currently rates Sykes' stock a "hold," not a "buy."
