In this article, we discuss billionaire Seth Klarman’s top 4 biotech stock picks. To read the detailed analysis of the biotech industry, Seth Klarman’s investment philosophy, and Baupost Group’s performance and Q3 bets, go directly to Billionaire Seth Klarman’s Biotech Stock Picks.
4. Jacobs Solutions Inc. (NYSE:J)
Seth Klarman’s Stake Value: $66.583 million
Jacobs Solutions Inc. (NYSE:J) is a Dallas-based firm that offers technical professional services. The company has a diverse clientele, including biotech companies that are engaged in messenger RNA (mRNA), cell therapy, gene therapy, and more.
On November 21, Jacobs Solutions Inc. (NYSE:J) announced its agreement with Amentum Services, Inc. to develop a brand new, publicly traded business that will operate in the government services sector. The new company will be created by a spin-off of the firm’s critical mission solutions and cyber and intelligence government services businesses that will be combined with Amentum. Jacobs Solutions Inc. (NYSE:J) and its shareholders will have a 63% ownership stake in the new company, and the firm expects to receive $1 billion in cash dividend at closing, plus additional value after closing, through the disposition of a retained stake in the combined company. The new combined company will commence operations with a consolidated revenue of $13 billion following an organizational restructuring.
On November 21, Jacobs Solutions Inc. (NYSE:J) posted its Q4 non-GAAP EPS of $1.90, and its revenue increased 10.5% year-over-year (YoY) to $4.29 billion, surpassing the estimates by $80 million.
On November 16, Jacobs Solutions Inc. (NYSE:J) reported that it was awarded a five-year contract renewal for operations and maintenance of Farmington City in New Mexico for the wastewater and surface water treatment plants and wastewater collection and drinking water distribution systems. The contract will start on January 1, 2024, and will have a value of $9 million per year.
Jacobs Solutions Inc. (NYSE:J) was mentioned in Madison Investments’ third quarter 2023 investor letter. Here is what it said:
“Jacobs Solutions Inc. (NYSE:J), a professional services firm, is benefitting from increased spending on large infrastructure, water, and energy transition projects. Jacobs Solutions is a professional services firm spanning consulting, engineering, and project delivery for both the public and private sector. We admire the company’s strong position across infrastructure, water, advanced manufacturing, and energy transition – all areas which we believe have a bright future. However, as the shares appreciated, we decided to sell to fund more attractive opportunities.”
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