“Given the highly accretive Allergan acquisition, management has increased their 2017 EPS goal to $25 per share, and we see a number of upside levers that could drive EPS as high as $27. Given that the combined company has a faster-growing, higher-margin, and more durable business, we think it merits a higher P/E multiple of 15-17x, implying nearly 50% upside over the next 18 months. And lastly, while we clearly like the organic growth story, we do think a potential acquisition by Pfizer remains a possibility over the medium-term, and regard it as a call option on our investment.”
Both Cooperman and Robbins were bearish on eBay Inc (NASDAQ:EBAY) during the first trimester. While the former reduced its holding in the company by 47% to 1.84 million shares valued at $106.30 million, the latter cut his fund’s exposure to the company by 21%, taking the total stake to 7.67 million shares valued at $442.65 million. The stock of the $74.15 billion technology company has appreciated by 8.76% year-to-date. It was recently announced that eBay Inc (NASDAQ:EBAY)’s much anticipated spinoff of PayPal will occur in July with shares of the payment company starting to trade on the 20th. Icahn Capital Lp, the activist hedge fund of the renowned investor Carl Icahn, who lost a battle with the eBay Inc (NASDAQ:EBAY)’s management early last year when he purported the spinoff idea, is also the company’s largest stockholder within our database owning some 46.27 million shares valued at $2.67 billion.
Glenview was more bullish on American International Group Inc (NYSE:AIG) than Omega as it increased its stake in the $83.64 billion insurance company by 18% during the first three months to 6.52 million shares valued at $357.46 million as compared with Omega’s 3% reduction in the holding to 3.87 million shares valued at $212.29 million. The 12% upward march of American International Group Inc (NYSE:AIG)’s stock this year has rewarded Robbins for his optimism. Among the company’s stockholders that we track, Bruce Berkowitz’s Fairholme is the largest with 23.87 million shares valued at $1.31 billion.
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Another company that the two money managers had a slight difference of opinion was Sunedison Inc (NYSE:SUNE) as Glenview raised its stake in the company by 13% during the first three months to 11.96 million shares valued at $287.04 million, while Omega trimmed its stake by 2% to 8.80 million shares valued at $211.12 million. The stock price is up by a staggering 61% so far this year. David Einhorn’s Greenlight Capital heads the list of Sunedison Inc (NYSE:SUNE)’s shareholders in our database holding 24.95 million shares valued at $598.89 million.
While Omega increased its holding in Citigroup Inc (NYSE:C) by 1% to 4.30 million shares valued at $277.82 million during the first trimester, Glenview initiated a stake in the bank holding company with about 5.37 million shares valued at $276.42 million. The stock is up by a modest 4.12% year-to-date. Boykin Curry’s Eagle Capital Management is the largest stockholder of Citigroup Inc (NYSE:C) among those we track, owning some 26.35 million shares valued at $1.36 billion.
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