Investing.com — Mizuho (NYSE:MFG) has updated its US Top Picks list for January, adding Chewy (NYSE:CHWY), GE Vernova (NYSE:GEV), Enliven Therapeutics Inc (NASDAQ:ELVN), Quest Diagnostics (NYSE:DGX), DuPont de Nemours (NYSE:DD), and Salesforce (NYSE:CRM). These selections reflect Mizuho’s highest-conviction ideas driven by catalysts expected to play out over the next 12 months.
Mizuho identifies Chewy as a top pick in the consumer internet space. According to the investment bank, the pet food retailer benefits from “multiple internal levers facilitating EBITDA margin expansion” and increasing engagement with its under-penetrated mobile app.
The firm also sees opportunities in the company’s vet-focused initiatives, adding that Chewy’s efforts to expand automation and build on secular category growth position it for sustained profitability.
“These factors combine for a still catalyst-rich name, self-funded through ample cash generation and with >$400M in remaining buybacks,” Mizuho analysts noted.
They set a price target of $42 for Chewy shares, implying more than 17% upside from the last closing price.
GE Vernova was also added to the US Top Picks list, thanks to its robust role in providing gas turbines, wind turbines, and grid equipment, supplying approximately 30% of the world’s electricity.
Mizuho estimates data center power demand will grow at a 21% compound annual growth rate (CAGR) through 2030 as a key growth driver. It expects “new natural gas power contracts to flow through in early 2025, followed by gas generator OEM orders in mid-2025.”
Other key catalysts that could emerge in the coming months include potential favorable regulatory and policy changes under Trump 2.0.
For Enliven Therapeutics, Mizuho analysts highlight the company’s investigational tyrosine kinase inhibitor (TKI) ELVN-001 as showing promising early efficacy and safety data in previously treated patients. This strengthens its outlook alongside asciminib, which is expected to gain approval for front-line use in chronic myeloid leukemia (CML).
As asciminib expands in the front-line setting, the post-asciminib treatment landscape—where ELVN-001 is currently targeted—is likely to grow. Moreover, ELVN-001 could have potential in first-line treatment.
Quest Diagnostics was picked for its stable cash flow and growth potential in diagnostic services.
“We believe DGX has a clear line of sight into the company’s initial 2025 adjusted EPS guide of high-single digit (HSD) growth given the strength in its base diagnostics business, improved reimbursement backdrop, stable labor environment and upside potential from M&A,” analysts said.
Furthermore, the company benefits from a strong pricing environment across Medicare and commercial sectors, while maintaining a solid pipeline for outreach lab acquisitions, which is expected to be a priority in 2025.
Mizuho analysts see DuPont’s planned three-way split into ElectronicsCo, WaterCo, and the new DuPont as a value unlock, with ElectronicsCo and WaterCo aligning with high-multiple peers.
The new DuPont is expected retain leadership in nonwoven fabrics and specialty materials under brands like Kevlar and Tyvek. Mizuho’s $100 valuation reflects a conservative discount, factoring in the 18-24 month timeline and the unseasoned nature of the new entities.
Key catalysts include seasonal sales improvements, electronics recovery, and progress toward the split.
Salesforce rounds out the January additions to the US Top Picks list. Analysts view Salesforce as well-positioned to drive digital transformation for its large customer base, leveraging its core role in sales, marketing, and customer support.
The company’s Data Cloud and Agentforce technology are seen as key drivers of productivity and revenue growth.
“Agentforce has the potential to be game-changing technology by driving material productivity improvements and a strong ROI, thus unlocking major benefits for customers while driving bookings and revenue re-acceleration for CRM, analysts emphasized.
They also highlight Salesforce’s focus on profitable growth, with catalysts including Agentforce 2.0 updates, large multi-cloud deals, operating margin performance, and the appointment of a new CFO.
