Mizuho Expands Its Top Picks List with 2 New Stocks

Mizuho has revised its Top Picks list for October, featuring Harmony Biosciences and Fortive Corp as its latest high-conviction investment ideas. This curated list, which includes 24 stocks from various sectors, reflects the analysts’ differentiated ideas and is updated monthly to highlight promising investment opportunities.

Harmony Biosciences, focused on treatments for orphan central nervous system diseases, earned its spot due to its effective commercial execution and the strong potential of its lead product, pitolisant, which is used to treat narcolepsy. Mizuho noted Harmony’s evolution from a specialized pharmaceutical company with a single product to a more dynamic biotech firm with multiple avenues for growth.

The firm mentions that while it currently anticipates revenue from three sources, there may be as many as eight additional opportunities not yet accounted for. This transformation, along with anticipated positive clinical data by the end of 2025, could enable the company to achieve a re-rating within the next year.

Fortive Corp has garnered interest with its strategic decision to spin off its Precision Technologies segment. This tax-free separation will result in two independent publicly traded companies, each with distinct business models and capital strategies. Mizuho perceives this move as a significant opportunity for Fortive, especially in light of the company’s focus on stock buybacks, which may help alleviate perceived risks.

Mizuho points out that the sum-of-the-parts valuation for Fortive is compelling, setting a price target of $90 for the stock. Additionally, they note that the new CEO and CFO succession presents an opportunity for fresh perspectives and a renewed strategic direction for the company.