5 Stocks to Buy According to Peter Simmie’s Bristol Gate Capital

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1. Zoetis Inc. (NYSE:ZTS)

Bristol Gate Capital Stake Value: $121,368,000
Percentage Bristol Gate Capital’s 13F Portfolio: 5.45%
Number of Hedge Fund Holders: 61

Zoetis Inc. (NYSE:ZTS) develops, manufactures, and sells pharmaceuticals, vaccinations, biodevices, diagnostic items, genetic testing, and precision livestock farming technologies. On December 20, Citi analyst Navann Ty raised his price target on Zoetis Inc. (NYSE:ZTS) to $232 from $184 and maintained a Neutral rating on the shares.

Bristol Gate Capital owns approximately 497,349 Zoetis Inc. (NYSE:ZTS) shares as of Q4 2021, worth $121.37 million, representing 5.45% of the total 13F securities. The hedge fund has slashed its stake in the firm by 7%, although it still remains the fund’s largest holding.

Overall, hedge funds are loading up on Zoetis Inc. (NYSE:ZTS), as 61 out of the 924 funds tracked by Insider Monkey held stakes in the company at the end of December 2021, up from 58 funds a quarter earlier.

In its third quarter 2021 investor letter Polen Capital, an investment management firm, mentioned Zoetis Inc. (NYSE:ZTS). Here is what the fund said:

“Finally, exiting our position in Zoetis was purely a function of valuation. With the business trading for up to 45x forward earnings, we felt we had more attractive alternatives. We maintain high conviction in the company and their competitive advantages and hope to be owners again, at a more attractive valuation. In short, we sold what we believe to be very a high-quality business at relatively high valuations to fund the purchase of equally high-quality businesses trading at lower valuations and even better long-term earnings growth prospects. While we are certainly not tactical in approach, we do aim to make prudent adjustments over time.”

You can also take a peek at 10 Stocks to Buy Now According to Jeffrey Gates’ Gates Capital and 10 Stocks to Invest in Now According to Anthony Bozza’s Lakewood Capital.

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