Bill Gates’ 5 Stock Picks with Huge Upside Potential

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1. Schrödinger, Inc. (NASDAQ:SDGR)

Value of Bill & Melinda Gates Foundation Trust’s 13F Position: $197 million

Analysts’ Average Upside Estimate: 59.5%

Topping the list of Bill Gates’ 5 Stock Picks with Huge Upside Potential is AI-based drug discovery company Schrödinger, Inc. (NASDAQ:SDGR), which analysts have pegged for nearly 60% near-term growth. The Bill & Melinda Gates Foundation Trust maintained its holding of 6.98 million SDGR shares during Q3 to remain the largest shareholder of the company. Cathie Wood’s ARK Investment also has a notable stake in Schrödinger, owning 3.52 million shares on September 30.

Analysts have taken a cautious note on Schrödinger, Inc. (NASDAQ:SDGR) in recent weeks given the stock’s 41.3% slide since July 19, but remain bullish on its upside potential. BMO Capital lowered its price target on SDGR to $67 (more than double the current price) from $78 in early August, noting the unpredictability of the company’s revenue timing, but reiterating its positive long-term outlook for the company.

On the other hand, Goldman Sachs maintained a ‘Hold’ rating on Schrödinger, Inc. (NASDAQ:SDGR) on October 20 as it waits for further visibility on the company’s early-2024 outlook, including the contract renewal prospects for its software business. Goldman Sachs analyst Chris Shibutani has a $31 price target on the stock.

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