Roblox, Starbucks and Block make BTIG's top picks list: Sector Watch
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Technology, media and telecom have the most stocks in BTIG's Top Picks report.
The report "compiles the highest conviction investment ideas from across the BTIG research platform over a 12-month investment horizon, beginning in 1H2022."
Consumer


D.R. Horton (NYSE:DHI), price target $129. Its "deep, dominant local market share positions and status as the largest, lowest-cost producer in the growing entry-level home segment have positioned the company extremely well in the current homebuilding operating environment."
Starbucks (NASDAQ:SBUX), $130. "Starbucks has a compelling return profile for the coming year as its unfolding sales and economic recovery is matched by accelerating global unit development and stronger shareholder return targets."

Financials
Block (NYSE:SQ), $320. The company is "at the intersection of some of the spaceâs most powerful trends and opportunities": super apps remaining after consolidation, serving the needs of unbanked and underbanked, convergence of FinTech and Digital Assets.
Healthcare

Boston Scientific (NYSE:BSX), $52. Numerous "new product launches, acquired businesses, and focus on fast-growing areas of MedTech - more than 40% of the companyâs business is expected to be in markets growing at a >7% CAGR â offer a long revenue growth runway."
Natera (NASDAQ:NTRA), $160. "We are confident in Nateraâs platform in the sense that the company has successfully proven its ability to not only enter new markets, but compete for and achieve leadership positions in new markets."
Hologic (NASDAQ:HOLX), $82. "As COVID wanes, we believe investors will start to see base business EPS leverage midway through FY22 as top-line growth picks up and synergies from M&A are realized."
Alcon (NYSE:ALC), $92. "As we enter FY22, we think many of ALC's top-line growth drivers are intact; continued rollout of P1 contact lenses and the formation of a drop-oriented sales force that is selling Pataday, Simbrinza, and Systane products."
Thermo Fisher (NYSE:TMO), $705. "We believe TMOâs core business fundamentals are stronger than ever, and TMO remains well-positioned to continue to capitalize on the fastest-growing end-market segments (e.g., biopharma, emerging markets), particularly with the recent completion of the PPD acquisition and the strengthening of bioprocessing production capabilities."

Real Estate
AvalonBay Communities (NYSE:AVB), $307. "AVB owns high-quality assets mainly in major Coastal cities and suburbs. We believe these markets will achieve above-average levels of SSNOI growth in 2022 as overall demand remains strong, concessions burn off, and bad debt normalizes."
Technology, Media & Telecom

AppLovin (NASDAQ:APP), $128. "AppLovin has one of the strongest fundamental stories in 2022 across our coverage as the organic momentum of the Software operation is set to be enhanced by the MoPub acquisition and in combination with the core Max solution that should create one of the most compelling solutions for mediation/real-time bidding across the ad tech landscape."
Roblox (NYSE:RBLX), $133. "We see an attractive, multi-year bookings and cash flow growth trajectory for Roblox as the business continues to evolve from a primarily US-centric gaming and social experience to a global network with a multitude of use cases (gaming, social, advertising, commerce, education, and entertainment) and bookings drivers."
Zscaler (NASDAQ:ZS), $439. "In short, we like ZS because we see the company sitting squarely in front of multi-year growth opportunity as companies increasingly adopt cloud-based network security solutions and because we are finding real evidence of tangential products gaining momentum."
Uber (NYSE:UBER), $80. "Why UBER? 1) Visibility is improving; 2) Lagging reopening story, ready to catch-up; 3) SOTP case coming into focus. We look for a Feb. analyst day to be positive catalyst."
Farfetch (NYSE:FTCH), $50. "After a strong 2020 for the stock (~7x return), FTCH shares have been cut almost in half to more reasonable levels. Additionally, we view 2022 as a catalyst-rich year with a potential, likely to be strategic deal with Richemont, launch of its Beauty offering, growth in high-margin ad revenue and what we expect will be strong adoption of its white label services."
Tyler Technologies (NYSE:TYL), $585. We "expect the shares will outperform this year on the back of numerous tailwinds including the dispersion/deployment of stimulus funds, increased market activity driven by pent-up demand, and further unlocking of value from the joint NIC/Tyler sales efforts."

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