Mizuho adds 2 new stocks to Investing.com’s Top Picks list

Investing.com — Mizuho updated its October top picks list in a note on Thursday, adding Harmony Biosciences and Fortive (NYSE: ) Corp as the latest high conviction ideas.

The Top Picks list, which includes 24 stocks from six sectors, reflects the most “differentiated ideas” of Mizuho analysts and is updated monthly to present favored investment opportunities.

Harmony Biosciences ( HRMY ), an orphan company focused on central nervous system (CNS) diseases, made the list due to its strong commercial execution and promising outlook for its lead active, pitolisant (Wakix), which treats narcolepsy.

Mizuho highlighted Harmony’s transformation from a “commercial-stage, single-product specialty pharmaceutical company” to a more dynamic biotech-like firm with multiple growth paths.

“Although we currently model only three revenue contributors, there are up to eight opportunities remaining unmodeled,” the firm said.

This change, along with potential positive clinical data readings by the end of 2025, positions the company for a possible re-evaluation in the next 12 months.

Fortive Corp . (FTV), on the other hand, has attracted attention with its plan to spin off the Precision Technologies segment. This tax-free spin-off will create two independent publicly traded companies, each with “separate/focused business models” and tailored capital strategies.

Mizuho sees the move as a significant opportunity for Fortive, especially given the company’s focus on share buybacks, which could help mitigate perceived risks.

“The SOTP (sum of the parts valuation) is too attractive to ignore,” Mizuho added, setting a $90 price target for Fortive.

Furthermore, they said, “CEO and CFO succession brings a new eye to the driver’s seat, opening a new path forward.”