Greenlight’s David Einhorn pitches five turnaround stocks at Sohn, from AI to infrastructure
David Einhorn laid out a bullish case for a group of out-of-favor companies at the Sohn Investment Conference on Tuesday, betting that operational turnarounds and artificial intelligence adoption could drive sharp a rebound in overlooked stocks. “We’re finding interesting investments where management is repositioning businesses towards more durable, more disciplined, more generative growth,” Einhorn said. “The value creation question is whether management can convert the strategic change into better visibility, better margins and eventually a better multiple.” The Greenlight Capital founder pitched five investment ideas in New York, focusing on companies he said are in a transitional period with catalysts for growth. Acadia Healthcare Among Greenlight’s top ideas was Acadia Healthcare , a leading operator of behavioral health hospitals and clinics in the U.S. Einhorn said the company’s newer facilities are underutilized and that the key to unlocking value will be raising occupancy rates and negotiating improved reimbursement terms with insurers. “Acadia needs to bring these recent openings to the target occupancy rates, back to 70 or 80%, and negotiate better reimbursement rates with managed payers,” he said. The hedge fund manager said a 10 times multiple could translate into share price around $56, or double the current share price. Centene Greenlight also highlighted Centene, arguing the health insurer could become a major beneficiary of AI by automating labor-intensive claims processing functions. “Artificial Intelligence is well suited to automate manually, repetitive functions. We think Centene could be a huge beneficiary of AI in this fashion,” he said. Einhorn said the company struggled in 2025 with rising medical costs that outpaced annual price adjustments, but he sees significant upside if margins normalize. Applying what he called a conservative valuation multiple of 10 to 12 times earnings, Einhorn said the stock could be worth between $85 and $102 per share, compared with about $56 currently. Fluor Industrial engineering and construction company Fluor was another featured idea. Einhorn said the company is now positioned to benefit from a U.S. capital spending boom tied to data centers, pharmaceuticals, manufacturing, LNG infrastructure, nuclear power and copper mining. “It has transformed itself after a near death experience, and is poised for success and revaluation,” he said. “Investors remain focused on the past,” he said, arguing the market underappreciates Fluor’s exposure to multiple potential “super cycles.” The investor said the shares could reach $115 within several years if the company completes its buyback program. Versant Media Einhorn also pitched Versant Media , saying the business remains relatively insulated from streaming competition because of its focus on news and live sports. While acknowledging the structural pressures from cord-cutting, he said Versant’s cash generation gives it flexibility to repurchase shares or pursue acquisitions outside traditional cable television. “There’s significant free cash flow for either share purchases or to grow the business through bolt-on acquisitions away from the cable TV business,” he said. Einhorn estimated Versant could generate free cash flow equal to more than 60% of its market capitalization over the next four years. Victoria’s Secret Rounding out the presentation was Victoria’s Secret, where Einhorn said the lingerie retailer’s margins remain pressured by tariffs but that revenue trends have stabilized. He forecast a larger profit margin recovery beginning in 2027 and said Victoria’s Secret could also benefit from potential tariff refunds. Greenlight believes Victoria’s Secret could climb into the low $80 range, representing roughly 74% upside from current levels. Disclosure: Versant Media is the parent company of CNBC.
