Top 5 Stock Picks of Andrew Immerman’s Palestra Capital

3. Avantor, Inc. (NYSE:AVTR)

Palestra Capital’s Stake Value: $319.25 million

Palestra Capital’s 13F Portfolio: 6.77%

Number of Hedge Fund Holders: 53

Up next we have Avantor, Inc. (NYSE:AVTR), which deals in the provision of products and services to the biopharma, education, healthcare, and applied materials industries around the globe. Palestra Capital’s 7.8 million shares in the firm represent 6.77% of the fund’s overall portfolio.

On December 9, Cowen analyst Dan Brennan reiterated an ‘Outperform’ rating on Avantor, Inc. (NYSE:AVTR) stock, and increased the price target to $50 from $48, seeing upside as the company strategically invests in its proprietary products that drive better growth and margins. Avantor, Inc. (NYSE:AVTR) reported earnings per share of $0.35 for the third quarter, surpassing estimates by $0.03.

Hedge funds were loading up on Avantor, Inc. (NYSE:AVTR) stock. 53 hedge funds held stakes in the company in the third quarter, which is up from 44 hedge funds bullish on Avantor, Inc. (NYSE:AVTR) a quarter ago.

Investment management firm ClearBridge Investments discussed Avantor, Inc. (NYSE:AVTR) in its investor letter for the third quarter. It said:

Avantor, which distributes proprietary, higher-margin consumables products to life science research companies, has benefited from accretive research & development as well as paying down debt, which has contributed to increased margins and strong stock performance.”