Platform Specialty Products Corporation (NYSE: PAH) and Howard Hughes Corporation (NYSE: HHC) are among the top stocks that Bill Ackman owns which appear to have the most upside potential based on consensus street estimates. Value investors may want to take a closer look at the names below.
Pershing Square’s 7 Bullish Analyst Targets
Banks and brokerages often release 12 to 18 month price targets for the stocks they cover. Analyst upgrades and downgrades alone can often impact a company’s stock price.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” – Benjamin Graham
The table below ranks stocks in Pershing Square’s portfolio with most bullish analyst targets:
|Ticker||Name||Upside (Analyst Target)||% Of Portfolio|
|PAH||PLATFORM SPECIALTY PRODS COR||25.3%||8.1%|
|HHC||HOWARD HUGHES CORP||22.1%||6.3%|
|UTX||UNITED TECHNOLOGIES CORP||20.3%||5.1%|
|QSR||RESTAURANT BRANDS INTL INC||17.5%||28.6%|
|MDLZ||MONDELEZ INTL INC||17.3%||14.0%|
Platform Specialty Products Corporation (NYSE: PAH) appears to be the most undervalued stock in the fund based on the average price target from Wall Street analysts.
Howard Hughes Corporation (The) (NYSE: HHC) appears to be the second most undervalued stock in the portfolio. The company’s upside of 22.1% is very intriguing. With 20.3% margin of safety, United Technologies Corporation (NYSE: UTX) is the third most attractively priced security.
Why Follow Bill Ackman’s Portfolio?
Herbalife (NYSE: HLF). Valeant Pharmaceuticals (NYSE: VRX). Target (NYSE: TGT). These are just a few of the companies that activist investor Bill Ackman has muscled his way into, some of which have left him tattered and others have catapulted him to billionaire status.
When Ackman invests, he places billion-dollar bets on a handful of companies. This Indiana Jones approach has led to some bruising defeats, including a nearly $4 billion loss from a misplaced Valeant position. With rare humility, Ackman apologized to his investors for what he coughed up as a mistake.
One of Ackman’s most infamous bets was his multi-year $1 billion short position on weight loss and nutritional supplements play Herbalife, a position he abandoned amid the rise of the company’s stock despite Ackman’s cries of a pyramid scheme. Although Ackman and Pershing Square have struggled recently, the hedge fund does have a track record of producing strong returns for investors.
The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Pershing Square page.
As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.