Is APi Group Corporation (APG) a Multibagger Stock?

Investment management company Maran Capital Management recently released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. Maran Partners Fund returned +0.9%, net of all fees and expenses in the second quarter and +6.1% net year-to-date. The fund is compounded at the rate of 12% per year, net over the last five years. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Maran Capital Management highlighted stocks like APi Group Corporation (NYSE:APG) in the second quarter 2023 investor letter. Headquartered in New Brighton, Minnesota, APi Group Corporation (NYSE:APG) is a safety, specialty, and industrial services provider. On August 4, 2023, APi Group Corporation (NYSE:APG) stock closed at $28.12 per share. One-month return of APi Group Corporation (NYSE:APG) was 6.47%, and its shares gained 62.54% of their value over the last 52 weeks. APi Group Corporation (NYSE:APG) has a market capitalization of $6.614 billion.

Maran Capital Management made the following comment about APi Group Corporation (NYSE:APG) in its second quarter 2023 investor letter:

APi Group Corporation (NYSE:APG) has quietly quadrupled since our first purchase in April 2020, and doubled since we added to the position in September 2022, when we brought it into our top five positions. It has executed exceptionally well, demonstrating the quality of its business through Covid and since. Obviously, my mistake has been to have this position sized too small over our holding period.

That said, I believe it can double again over the next few years. By 2026, with EBITDA at over $1 billion, a 15x multiple would take the enterprise value north of $15 billion and the market cap to around $13 billion, or about $55 per share.”

Pixabay/Public Domain

APi Group Corporation (NYSE:APG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held APi Group Corporation (NYSE:APG) at the end of first quarter which was 31 in the previous quarter.

We discussed APi Group Corporation (NYSE:APG) in another article and shared the list of best Russell 2000 stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.