5 Stocks to Buy Now According to Jeffrey Gates’ Gates Capital

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1. Vista Outdoor Inc. (NYSE:VSTO)

Gates Capital Stake Value: $246,218,000
Percentage of Gates Capital’s 13F Portfolio: 6.8%
Number of Hedge Fund Holders: 25

Vista Outdoor Inc. (NYSE:VSTO) is a consumer goods company that designs, manufactures, and markets outdoor sports and entertainment equipment. According to the 13F filings for the fourth quarter of 2021, Gates Capital holds over 5.34 million Vista Outdoor Inc. (NYSE:VSTO) shares, amounting to more than $246.22 million and representing 6.8% of the fund’s portfolio value. Gates Capital is the leading stakeholder of Vista Outdoor Inc. (NYSE:VSTO).

On February 4, Roth Capital analyst Matt Koranda trimmed his price target on Vista Outdoor Inc. (NYSE:VSTO) from $61 to $57 and maintained a Buy rating. According to the analyst, a continuing ammunition up-cycle would benefit Vista Outdoor Inc. (NYSE:VSTO) over the following three quarters, albeit he saw evidence that a peak is nearing.

A total of 25 hedge funds reported owning stakes worth $460.48 million in Vista Outdoor Inc. (NYSE:VSTO) during Q4 2021, compared to 23 funds in the preceding quarter, holding stakes in the company amounting to $407.07 million.

ClearBridge Investments, in its second quarter 2021 investor letter, mentioned Vista Outdoor Inc. (NYSE:VSTO). Here is what the fund said:

 “Our Strategy outperformed with strong results from consumer discretionary stocks like Vista Outdoor. Vista Outdoor, a manufacturer of a wide range of products serving the outdoor sports and recreation markets, also performed well in the period on continued demand and growing margins.”

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

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