Jefferies recently refreshed its “Franchise Picks” list, and it sees a solid future for Nvidia (NVDA) as next-gen Blackwell chips are causing the company to remain dominant.

The Franchise Picks list is Jefferies’ tightest collection of “Buy”-rated ideas. The firm only admits stocks on which its analysts have solid conviction.

Alongside Nvidia, Jefferies also sees Capital One Financial (COF), Expand Energy (EXE), and Huntington Bancshares (HBAN) as top picks. These stocks are riding tailwinds from AI compute, consumer credit scale, the energy boom, and the consolidation in the Midwestern banking sector. There’s plenty of upside if things go according to plan. 

Let’s dive in. 

Stock #1: Capital One Financial (COF)

Capital One Financial just won regulatory approval for its $35 billion takeover of Discover. The combined entity is now one of the top card issuers. Capital One already posted solid net income that rose 10% year-over-year last quarter.

It now expects to redirect a sizable chunk of Discover spend onto its own processing rails, which could lift margins several hundred basis points. Litigation over deposit practices did cost $425 million, but that is lunch money compared with the incremental cash flow from a vertically integrated payments franchise.

Jefferies has maintained its “Buy” rating on this stock and recently adjusted its price target on COF from $200 to $230.

The mean price target is at $217.75, and Jefferies isn’t the only firm that’s bullish here. Price targets go up to $264.

Stock #2: Expand Energy (EXE)

Most investors have never heard of Expand Energy, but Jefferies’ energy team loves its business. Expand Energy expects to push production to 7.1 bcf‑equivalent‑per‑day in 2025 and 7.5 bcfed the year after.

Management just posted a clean earnings beat and reaffirmed a $2.7 billion capital plan to run 12 rigs. The U.S. LNG build‑out means domestic gas (NGN25) demand could rise 18% annually through the decade, and Expand’s acreage sits close to Gulf Coast liquefaction hubs.

Jefferies raised its target to $135 from $130. The mean price target here is $127.81, and price targets go up to $170.

Stock #2: Huntington Bancshares (HBAN)

Regional banks remain unloved, but Huntington Bancshares’ credit quality looks rock solid. It trades at just under 11 times forward earnings and has a dividend yield of 3.86%.

It posted Q1 net income that rose 26% year-over-year, and has had 5% loan growth. It reiterated a 5% to 7% loan and a 3% to 5% deposit CAGR through 2025.  The Midwest economy is stronger than coastal investors believe. Manufacturing reshoring is happening, and Huntington sits at the heart of it. It lends to small and midsize firms that are busy rebuilding supply chains.

Jefferies initiated coverage last month and set a price target of $20. The mean price target here is $17.65, and Jefferies has the highest price target here among 21 analysts.