Home Editor's Picks PayPal and Oracle are new top picks at Mizuho

PayPal and Oracle are new top picks at Mizuho

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Mizuho has updated its Top Picks list, representing its analysts’ highest conviction, catalyst-driven ideas.

Following the June update, the revised list now includes new additions such as PayPal Holdings (NASDAQ:PYPL), Oracle Corp . (NYSE:ORCL), NEXTracker (NXT), Intra-Cellular Therapies (NASDAQ:ITCI), Cigna Group, (NYSE:CI), DuPont de Nemours (NYSE:DD), and Ventas (NYSE:VTR).

Analysts at Mizuho have highlighted the potential of PayPal’s newly introduced guest checkout solution, Fastlane. Citing their proprietary analysis, analysts believe that Fastlane could generate a significant lift in transaction margin dollars, estimated between $1.0 to $1.5 billion over the medium term. This projection is based on the $1.43 trillion of annual e-commerce spend that the analysts believe Fastlane can address.

“This represents 5-10% upside vs. 2023 levels. Plus, we are encouraged by stabilization in Branded Checkout trends across our analysis of two dozen of PYPL’s largest e-comm partners,” they wrote.

“We view valuation as compelling and see an attractive risk/reward setup, as PYPL trades more than 1 standard deviation below its historical spread vs. peers. As the Fastlane opportunity materializes, we believe PYPL should increasingly trade at a modest premium vs. the legacy payments group,” they added.

Meanwhile, Oracle’s inclusion in the Top Picks list comes amid the stock’s robust performance and strategic advantages in the technology sector.

Analysts believe Oracle’s OCI (Oracle Cloud Infrastructure) offering is underappreciated by investors, citing its cost-effectiveness—33% cheaper than AWS for basic compute services.

They see the company as well-positioned to capitalize on the shift from on-premise to cloud solutions due to the under-penetration of public cloud among enterprise customers and Oracle’s substantial on-premise customer base. The company’s industry-focused approach to applications further enhances its growth potential, Mizuho noted.

“We have confidence in Oracle’s management team to expand operating margins to 45% by FY26. Oracle has several other operating levers including: 1) cloud margin expansion, 2) sales and R&D efficiencies, and 3) leverage from scale,” analysts wrote.

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