Top 5 Investment Bank Stocks WarrenAI Says to Watch in 2026

Investing.com -- The following European software giants are positioned for accelerated growth in 2026, according to a recent Morgan Stanley analysis. These industry leaders stand out for their strong market positions and growth potential in an increasingly competitive landscape.

Morgan Stanley’s assessment highlights these companies as top picks in their respective categories, with both demonstrating resilient business models and clear pathways for expansion.

See how Wall Street analysts are valuing these stocks with InvestingPro’s full ratings, price targets, and earnings models -

SAP - Top Pick in Software, says MS. As the global leader in Enterprise Resource Planning software, SAP is expected to accelerate its organic growth to 12% in 2026 as the shift to S/4HANA progresses. After a standout 2024 with approximately 72% total return, SAP experienced some derating in 2025 with an 11% total return decline as cloud computing business growth moderated and AI disruption debates affected investor sentiment. Morgan Stanley sees an attractive valuation equation for 2026, expecting SAP to continue delivering mid-20s percentage organic cloud revenue growth. Further productivity gains from investments in AI and automation should drive approximately 15% operating profit growth on an ex-FX basis, with non-IFRS operating margins increasing to 29% from about 28%. SAP’s nearly €4 billion net cash position and strong free cash flow generation suggest a high likelihood of additional capital returns via buybacks, potentially driving EPS growth in the high-teens. Long-term, Morgan Stanley sees a clear pathway for SAP to double EPS by 2030.

Recently, SAP has been addressing several legal and regulatory matters. The company was sued by o9 Solutions over alleged trade secret theft and is also facing potential cartel proceedings in Germany, while separately offering concessions to settle an EU antitrust investigation.

Adyen - Top Pick in Payments, says MS. Adyen, a global unified payments platform providing enterprise merchants with end-to-end payment services, is projected to accelerate its net revenue growth to 22% in 2026 from 21% in 2025. Despite 2025 growth tracking below initial guidance of approximately 24%, which contributed to a 4% price decline that year, Morgan Stanley remains optimistic. The analysis notes that tariff-related disruption impacted Asia-headquartered ecommerce merchants, creating a 3 percentage point growth headwind. Excluding these effects and impacts from large volume digital customers like eBay, Morgan Stanley estimates Adyen is growing net revenue at a mid-20s percentage rate. The company reported record new merchant business in 2025, which typically increases by a factor of 2-5x in its second year. Adyen’s single global payments platform and regulatory infrastructure, built organically over more than a decade, positions it to continue gaining market share, particularly as more merchants seek partners for agentic payments processing. With a €26 trillion core payments total addressable market of which it has only penetrated 5%, Adyen has substantial growth potential.

Adyen received an upgrade to Outperform from Wolfe Research, and both TD Cowen and Bernstein reiterated positive ratings, citing the company’s technology and growth prospects. The company also announced a partnership with Lufthansa to provide new flexible payment options for travelers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- The following European software giants are positioned for accelerated growth in 2026, according to a recent Morgan Stanley analysis. These industry leaders stand out for their strong market positions and growth potential in an increasingly competitive landscape.

Morgan Stanley’s assessment highlights these companies as top picks in their respective categories, with both demonstrating resilient business models and clear pathways for expansion.

See how Wall Street analysts are valuing these stocks with InvestingPro’s full ratings, price targets, and earnings models -

SAP - Top Pick in Software, says MS. As the global leader in Enterprise Resource Planning software, SAP is expected to accelerate its organic growth to 12% in 2026 as the shift to S/4HANA progresses. After a standout 2024 with approximately 72% total return, SAP experienced some derating in 2025 with an 11% total return decline as cloud computing business growth moderated and AI disruption debates affected investor sentiment. Morgan Stanley sees an attractive valuation equation for 2026, expecting SAP to continue delivering mid-20s percentage organic cloud revenue growth. Further productivity gains from investments in AI and automation should drive approximately 15% operating profit growth on an ex-FX basis, with non-IFRS operating margins increasing to 29% from about 28%. SAP’s nearly €4 billion net cash position and strong free cash flow generation suggest a high likelihood of additional capital returns via buybacks, potentially driving EPS growth in the high-teens. Long-term, Morgan Stanley sees a clear pathway for SAP to double EPS by 2030.

Recently, SAP has been addressing several legal and regulatory matters. The company was sued by o9 Solutions over alleged trade secret theft and is also facing potential cartel proceedings in Germany, while separately offering concessions to settle an EU antitrust investigation.

Adyen - Top Pick in Payments, says MS. Adyen, a global unified payments platform providing enterprise merchants with end-to-end payment services, is projected to accelerate its net revenue growth to 22% in 2026 from 21% in 2025. Despite 2025 growth tracking below initial guidance of approximately 24%, which contributed to a 4% price decline that year, Morgan Stanley remains optimistic. The analysis notes that tariff-related disruption impacted Asia-headquartered ecommerce merchants, creating a 3 percentage point growth headwind. Excluding these effects and impacts from large volume digital customers like eBay, Morgan Stanley estimates Adyen is growing net revenue at a mid-20s percentage rate. The company reported record new merchant business in 2025, which typically increases by a factor of 2-5x in its second year. Adyen’s single global payments platform and regulatory infrastructure, built organically over more than a decade, positions it to continue gaining market share, particularly as more merchants seek partners for agentic payments processing. With a €26 trillion core payments total addressable market of which it has only penetrated 5%, Adyen has substantial growth potential.

Adyen received an upgrade to Outperform from Wolfe Research, and both TD Cowen and Bernstein reiterated positive ratings, citing the company’s technology and growth prospects. The company also announced a partnership with Lufthansa to provide new flexible payment options for travelers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- Blue Owl Technology Finance Corp (NYSE:OBDC) stock dropped 2.6% after Bloomberg reported that the company plans to issue a $400 million five-year bond, its first dollar bond offering in a year.

The business development company, a private credit fund under Blue Owl Capital Inc., is pricing the notes at a premium of 2.55 percentage points above Treasuries, tighter than the initial price talk of approximately 2.88 percentage points, according to Bloomberg, citing a person familiar with the matter. The company plans to use the proceeds to refinance existing debt.

The bond offering comes during a session marked by global market jitters that kept other potential borrowers on the sidelines. Despite the challenging market conditions, Blue Owl Technology Finance moved forward with the offering.

The company specializes in making debt and equity investments in technology-related companies, particularly software businesses based in the United States. Its investment portfolio focuses on senior secured or unsecured loans, subordinated loans, and equity-related securities in established and high-growth technology companies.

Bank of America Corp., Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Banking Corp., and U.S. Bancorp are serving as bookrunners for the deal.

As of September 30, 2025, Blue Owl Technology Finance had approximately $5.0 billion of debt outstanding, with $2.8 billion in unsecured and unsubordinated indebtedness and $2.3 billion in debt secured by company assets or assets of its subsidiaries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Tuesday’s market has seen significant fluctuations in various stocks, driven by recent developments and market dynamics. Stocks like Shopify (SHOP) and AeroVironment (AVAV) are experiencing notable declines, while others in the mega-cap and large-cap categories also show significant movement. Below are highlights of some of the biggest stock movers, from mega-caps to small caps.

Mega-Cap Movers (Market Cap:$200 billion USD or higher)

• Shopify (SHOP) -6.22%
• Avago Technologies (AVGO) -4.91%
• Oracle Corp (ORCL) -4.77%
• Kla-tencor Corp (KLAC) -4.09%
• Nvidia Corp (NVDA); NVIDIA (NVDA) Invests $150 Million in AI Inference Startup Baseten -3.42%
• Philip Morris Intl (PM); Jefferies downgrades Philip Morris stock rating to Hold on limited growth -3.19%
• Amazon Com Inc (AMZN); Hasbro appoints former Nintendo and Honest Company execs to board -3.3%
• Citigroup (C) -3.88%
• Applied Matls Inc (AMAT) -2.92%
• Tesla Motors (TSLA) -3.18%

Large-Cap Stock Movers (Market Cap:$10-$200 billion USD)

• AeroVironment (AVAV) -14.09%
• ETHA (ETHA) -9.2%
• Regencell Bioscience Holdings (RGC) -8.82%
• Roblox Corp (RBLX) -8.28%
• Bitmine Immersion Tech (BMNR); Bitmine ETH holdings reach 4.2 million tokens as shareholders approve proposals -8.13%
• 3M Co-Exch (MMM) -8.12%
• Network Appliance Inc (NTAP); Morgan Stanley downgrades NetApp stock rating on storage demand shift -8.07%
• Yandex (NBIS) -7.28%
• Lumentum Holdings Inc (LITE) +7.74%
• SanDisk Corp-Exch (SNDK) +9.04%

Mid-Cap Stock Movers (Market Cap:$2-$10 billion USD)

• Qiagen N.V.-Exch (QGEN); Qiagen (QGEN) Is Said To Weigh Strategic Options Amid Fresh Interest - Bloomberg +19.62%
• NantKwest (IBRX) +19.75%
• Mudrick Capital A (HYMC) +16.32%
• Ondas (ONDS) +9.38%
• Bellring Brands LLC (BRBR) +9.12%
• 21Vianet Group (VNET) -9.9%
• Cantor Equity Partners Class A (XXI) -9.51%
• Grupo Simec BATS (SIM) -9.83%
• MER Telemanagemen (SBET) -9.41%
• FETH ETH (FETH) -7.25%

Small-Cap Stock Movers (Market Cap:$300 million - $2 billion USD)

• Corvus Pharmaceuticals Inc (CRVS); Corvus reports positive phase 1 data for atopic dermatitis drug +144.12%
• RAPT Therapeutics Inc (RAPT) +63.83%
• Acadia Healthcare (ACHC); Acadia Healthcare names former CEO Osteen to lead company again +24.03%
• UVIX (UVIX) +20.37%
• NovaBay Pharmaceuticals Inc (NBY) -55.62%
• Rich Sparkle Holdings (ANPA) -26.38%
• SOLT (SOLT) -24.68%
• Agencia Comercial Spirits Ltd (AGCC) -23.4%
• ETHU (ETHU) -18.45%
• VPC Impact Acquisition (BKKT); Bakkt establishes $300 million at-the-market equity program -18.23%

For real-time, market-moving news, join InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- HSBC started coverage of SAP at Hold, saying the software group’s strong fundamentals and cloud-driven growth are already reflected in the share price, hence leaving limited upside and some downside to consensus expectations. U.S. listed shares are down 3%.

HSBC set a target price of EUR178, which is a downside from current EUR194 levels.

It said SAP’s valuation reflects its strong market position in enterprise resource planning and a solid double-digit earnings growth outlook.

HSBC expects SAP’s revenue to grow at a CAGR of 9.6% over 2025 to 2028, supported by continued migration of customers from on-premise software to the cloud.

The bank estimates about 5% of SAP’s on-premise customer base by revenue will migrate to the cloud each year, up from about 4.5% over 2022 to 2025. It said such migrations typically generate a revenue uplift of around 2.5 times for SAP.

HSBC flagged downside risks to longer-term consensus estimates. Market may be overestimating the pace of cloud migration and the resulting revenue uplift, as well as assuming margin expansion that it views as optimistic.

HSBC highlighted that about 60% of SAP’s on-premise customers have yet to begin migrating to the cloud, despite maintenance fee increases expected in 2027 and the end of support by 2030.

It also pointed to a partnership between ServiceNow and Rimini Street that could allow customers to delay or avoid cloud upgrades, adding competitive pressure. SAP’s current cloud backlog has shown subdued growth, with HSBC looking to fourth-quarter 2025 results for clearer signals.

HSBC said upside risks include faster-than-expected cloud adoption and stronger traction from SAP’s AI-focused initiatives, while downside risks include greater uptake of third-party maintenance options and disruption from AI-driven competitors.

Investing.com -- UBS warned that tightening supplies of DRAM memory chips could pose a meaningful risk to the global auto industry this year, with potential financial pressure for both suppliers and manufacturers. 

In a note on Tuesday, UBS analyst David Lesne said rising prices and limited visibility around supply could create “some drama in 2026.”

UBS highlighted that S&P Global Mobility has been flagging potential shortages specifically in DRAM, which carries “$25–150 content per vehicle.” 

According to the report, disruption risk “could start in Q2 26,” with industry participants already acknowledging “steep price hikes for those chip (>100%).”

To assess the financial impact, UBS modelled a scenario for a generic parts supplier. Lesne wrote that, under assumptions of a “+120% price increase for DRAM chips and 80% OEM recoveries,” the EBIT hit in 2026 could be approximately 5%.

However, UBS cautioned that “further downside risk is possible,” including weaker global production, DRAM inflation spreading to other semiconductors and lagging OEM compensation.

UBS believes suppliers with high exposure to electronics and ADAS face the most pressure.

For automakers, the financial effects could arrive with a lag as rising memory prices lead to “lengthy negotiations with tier-1s,” UBS said. The bigger issue may be supply chain stability as automakers compete with tech companies for capacity.

UBS reaffirmed a cautious stance and said Aumovio remains its preferred name given self-help drivers and a strong balance sheet, while the bank sees “more risk at TSLA/RIVN vs. F/GM.”