From: Laurent Chekroun (MAKOR CAPITAL MARKET) At: 01/18/26 07:40:06 UTC+1:00
Subject: >>> MASTERS' PLAYBOOK 2026 | 30 Picks | Full Thesis & Targets Inside
The roundtable skews toward quality compounders with margin expansion (Starbucks, Nestlé, LVMH), AI productivity plays (Deere, Synopsys, DoorDash), and special situations (Becton Dickinson spinoff, six biotech M&A targets, three recent acquirers optimizing for synergies). Most targets imply 15–25% annual IRR through 2028, with housing/interest-rate mean reversion as a key macro leveler.
Full artilce attched
BARRON'S 2026 ROUNDTABLE: 30 STOCKS TO BUY
Five Masters of the Game on Valuations, AI Tailwinds, and Market Rotations
KEY THEMES
AI Capex Cycle: DoorDash, Deere, Synopsys, Home Depot all leveraging AI/automation for productivity and revenue capture.
Biotech M&A Wave: Six biotech picks poised for acquisition (Cytokinetics, Arcellx, Apogee, Vaxcyte, Dyne, BioNTech) amid $400–$500B patent cliff opportunity.
Turnaround/Cyclical: Starbucks, Nestlé, LVMH, Home Depot, Becton Dickinson all recovering from operational/cyclical headwinds.
Scale Advantages: DoorDash, MercadoLibre, Allison, Cactus, Waste Management, Nike consolidating market share.
HENRY ELLENBOGEN | Durable Capital Partners
| Stock | Price (1/2/26) | 1-Sentence Thesis | 2026 Target |
| DoorDash (DASH) | $219.79 | Dominant 70% US market-share player leveraging AI to unlock high-margin ad revenue (growing 70%+ annually) while standardizing global platform. | $325–$390 (48–78% upside) |
| MercadoLibre (MELI) | $1,973.70 | Latin America's dominant facilities-based e-commerce platform with 30%+ organic unit growth and only 2.3% GMV monetized through ads—long runway ahead. | ~$3,940 (100% upside) |
| XPO Logistics (XPO) | $138.79 | Less-than-truckload trucking modernized through technology, delivering 2% labor savings even as volumes fell—poised for 20%+ annual returns. | 25–30x forward earnings |
| RBC Bearings (RBC) | $458.79 | Mission-critical aerospace/defense supplier with $2B backlog (up from $825M); sole supplier on 70% of products; defense to hit 50% of cash flow by year-end. | $19–$20 EPS (2028) |
| Shift4 Payments (FOUR) | $62.68 | Payments processor diversified away from restaurants (now 50%) with high-margin stadium and tax-free shopping businesses; trading at only 10x 2026 earnings. | $90–$106 (40–60% upside) |
DAVID GIROUX | T. Rowe Price Investment Management
| Stock | Price (1/2/26) | 1-Sentence Thesis | 2026 Target |
| Keurig Dr Pepper (KDP) | $27.73 | Cold beverage business generating mid-single-digit organic growth while pending JDE Peets acquisition unlocks massive sum-of-parts opportunity post-2026 split. | $34–$36 + 3% dividend (29% upside) |
| Cytokinetics (CYTK) | $61.73 | Early-stage biotech play on $400B+ biosimilar/generics cycle (Keytruda off-patent 2028); acquisition target at premium multiples. | M&A target |
| Arcellx (ACLX) | $63.34 | Biotech poised for acquisition as Big Pharma consolidates to combat patent cliff revenue headwinds. | M&A target |
| Apogee Therapeutics (APGE) | $75.78 | Biotech acquisition candidate in attractive generics/biosimilar super-cycle. | M&A target |
| Vaxcyte (PCVX) | $46.46 | Vaccine biotech with premium acquisition odds as pharma reshapes portfolios for GLP-1 and biosimilar era. | M&A target |
| Dyne Therapeutics (DYN) | $18.50 | Biotech takeover candidate amid pharma's need for premium M&A to offset patent expirations. | M&A target |
| BioNTech (BNTX) | $96.69 | Biotech poised for acquisition as consolidation accelerates across sector. | M&A target |
| Starbucks (SBUX) | $83.97 | Turnaround story under new CEO Brian Niccol (ex-Chipotle); restoring premium positioning, labor efficiency, and ending aggressive discounting. | $150–$180 (79–114% upside) |
| NiSource (NI) | $42.16 | Regulated utility in Indiana benefiting from Amazon data-center deal (saving ratepayers $1B over 15 years); EPS growth 11% through 2034. | 13–14% total return |
| CenterPoint Energy (CNP) | $38.73 | Houston-based utility in fastest-growing US region; 9% EPS growth, low power costs (25% below national avg), no rate cases through 2028. | Low-double-digit returns |
| Becton Dickinson (BDX) | $194.94 | Medical device turnaround as China VBP headwind clears, Alaris recall fades, and biotech spinoff (via Waters RMT) unlocks value. | $140+ (adjusted for spinoff) |
MERYL WITMER | Eagle Capital Partners
| Stock | Price (1/2/26) | 1-Sentence Thesis | 2026 Target |
| Cactus (WHD) | $47.03 | Oil & gas wellhead supplier acquiring Baker Hughes business; generating $4+ free cash flow per share with international upside in sour oil. | High upside on execution |
| Allison Transmission (ALSN) | $98.94 | Heavy-duty transmission leader (75% market share) acquiring Dana's off-highway business for transformative international footprint and cost synergies. | 50% upside in 2–3 years |
| Coats Group (COA.UK) | GBp 83.60 | Premium thread supplier acquiring OrthoLite (36% insole market share); new biodegradable and carbon-fiber products unlocking growth in athletic footwear. | 140–150p (67–79% upside) |
CHRISTOPHER ROSSBACH | J. Stern & Co., London
| Stock | Price (1/2/26) | 1-Sentence Thesis | 2026 Target |
| SAP (SAP) | $236.92 | Europe's largest software company (€43B revenue) capturing AI-driven productivity gains across enterprise workflows; cloud 25% growth, margins expanding 1%+ annually. | Earnings growth 15%+ |
| ASML Holding (ASML) | $1,163.78 | Sole EUV lithography supplier (35% of revenue) benefiting from AI chip demand and advanced node logic investment; 35x 2026 earnings. | 18% earnings growth |
| Nestlé (NSRGY) | $99.02 | Turnaround under new CEO Philipp Navratil; 4.3% organic growth, job cuts, and L'Oréal stake (€40B) creating capital allocation optionality. | 17%+ operating margins |
| LVMH (LVMUY) | $150.84 | Luxury cyclical recovery with new product innovation, retail execution, and mainland China returning to mid-to-high-single-digit growth; 50% DCF discount. | 12% EPS growth (3–5 years) |
| Nike (NKE) | $63.28 | Running franchise innovation (20%+ growth in Pegasus, Vomero) under 30-year veteran CEO Elliott Hill; 2026 World Cup brand tailwind offsetting China headwinds. | 21.2x FY2028 earnings |
TODD AHLSTEN | Parnassus Investments
| Stock | Price (1/2/26) | 1-Sentence Thesis | 2026 Target |
| Stryker (SYK) | $348.18 | Orthopedic/med-surg leader with Mako robotics (1,000+ hospitals) gaining 8.5pts knee and 3.5pts hip share; anti-fragile model on consumables. | $555 (17% annual IRR) |
| Boston Scientific (BSX) | $94.71 | Cardiovascular innovation (Farapulse AFib tech 40% penetration → 80%) and Watchman device (600K patients globally) driving 20%+ franchise growth. | $172 (30x 2029 earnings) |
| Deere (DE) | $466.80 | AI/precision agriculture flywheel: 500M acres of data, $6B precision ag revenue, highly engaged acres doubling by 2030; 25% EPS growth potential through decade. | $700–$800 (20x earnings) |
| Home Depot (HD) | $345.82 | Housing turnover at 2.9% (50-month downturn, historical low) creates cyclical opportunity; margins recovering from 13% to 15% as rates potentially fall below 6%. | $463–$533 (10% base IRR) |
| Synopsys (SNPS) | $480.42 | EDA software backbone of AI chip race; design complexity rising 30–40x as transistor counts hit 100–200B (heading to 1T); EDA spend rising from 7–8% to 10–12% of R&D. | $750 (56% upside in 2 years) |
| Waste Management (WM) | $218.40 | Landfill consolidation (top 3 now hold 60% capacity vs. 38% in 2008) and Stericycle acquisition ($7.2B) creating moat; recycling automation cutting labor costs 30–35%. | $297 (12% annual return) |
Source: Barron's Roundtable | Published Jan. 16, 2026
Panelists: Henry Ellenbogen, David Giroux, Meryl Witmer, Christopher Rossbach, Todd Ahlsten
Panelists: Henry Ellenbogen, David Giroux, Meryl Witmer, Christopher Rossbach, Todd Ahlsten