‘Hot IPO;’ These newly-public stocks are ‘strong buys,’ according to analysts — here’s why and where they’re going

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These days understanding the stock market is not an easy task. The year started in an optimistic mood, but after a decline that began in February, S&P 500 Almost back to the level it was at when 2023 started the action. And these confusing and uncertain times have been reflected in the IPO market.

IPOs depend strongly on the prediction of available capital; Whether it is cheap or expensive, both companies and want certainty. And we’re seeing now is an extension of last year’s historically low rates. IPO Activity, Last February saw a total of 16 IPOs in the US, raising a total of $2.1 billion. This is a small fraction of the historical norm – we saw 40 February IPOs last year, and a total of 138 IPOs in February 2021 raising $47 billion.

Despite the slowdown in IPOs, can still find ‘strong buying’ opportunities in this year’s new public stocks. Using the TipRanks database, we’ve pulled out details of two “hot IPOs” that made their market debuts in the last two months. Both have strong buy ratings from analysts on the Street, and both offer investors double-digit upside potential. let’s take a closer look.

NextTracker, Inc. ,NXT,

The first stock we’ll look at, NXT, is NEXTracker, a leader in the world’s solar power industry. The political push towards green and renewable energy sources has opened up new avenues for firms able to meet the needs of this industry – and NEXTracker does exactly that, providing smart solar tracking systems, and the software to back them up. , the world for solar photovoltaic plants around.

NEXTracker’s products allow PV plants to improve their performance through a combination of advanced control systems and data monitoring, and have made the company a global leader in the solar tracker niche. In total, NEXTracker has delivered trackers and software products that support more than 70 gigawatts of energy. The system has proved its usefulness even in difficult terrain or extreme weather.

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Last February 8, NEXTracker announced pricing of its IPO at $24 per share, with 26,600,000 shares of Class A common stock placed on the market. It was an upsized offering, with a starting price above the $20 to $23 initially expected. The company raised $638 million in gross revenue, which was more than the $535 million it had originally targeted. The stock debuted on the NASDAQ on February 9th.

In her coverage of NEXTracker, Barclays analyst Christine Cho laid out a clear path forward for the company, explaining why it offers strong opportunities for investors. She writes, “The case for utility-scale solar is as compelling as it has always been and this secular growth trend should continue: NXT will potentially be one of the major beneficiaries of the growing global demand for renewable energy.” Driven by 1) decarbonization, 2) increased electrification, and 3) rapidly decreasing costs, which will drive an 8% CAGR in utility-scale solar PV installations globally between 2022 and 2030. This is in part from fixed tilt systems Takes.

Giving some numbers to support these comments, Cho rates the stock as Overweight (a Buy) with a $42 price target that indicates room for a 35% share appreciation in the coming months. (To see Cho’s track record, Click here,

The Strong Buy consensus rating here is based on 12 recent analyst reviews, which break down to 9 Buys at 3 Holds. The stock is selling for $31.19 and its $39.67 average price target implies 27% one-year upside potential. ,View NXT Stock Forecast on TipRanks,

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Skyward Specialty Insurance Group, Inc. ,SKWD,

With green energy, we will shift our focus to the insurance industry, where Skyward operates as a specialized insurance provider in the property and casualty segment. The company offers medical stop-loss and surety policies for professionals, for industrialists, and for managers and across a wide range of niches.

Skyward opened its initial public offering in early January, placing 4.75 million shares on the market directly, another 3.75 million shares on the market through existing shareholders, and underwriter options on another 1.275 million shares. Initial pricing was expected to be between $14 and $16 per share, and the stock opened for trading at a high of $18.90 each. In the IPO, which closed on January 18, a total of 10.29 million shares were sold, much higher than the planned 9.775 million. The Company raised approximately $134 million in gross proceeds from the sale for both the Company and the selling shareholders.

Since the IPO, the company has released some financial data that should interest investors. Skyward had $879 million in gross written premium and another $2 billion in assets as of September 30, 2022. In 4Q22, the results of which were reported in February, the company showed net income of $20.4 million, up from only $1.3 million in 4Q21. The company’s adjusted operating income for the quarter was 36 cents per diluted share, up 56% year-over-year. Gross written premiums were up 18% y/y in Q4.

5-star analyst Mark Hughes, writing from Trueist, notes that Skyward has been on a long-term upward trajectory, and he believes it could continue that trend going forward. In his words, “The company has grown 35% in gross written premium on continuation business over the last seven quarters and should maintain double-digit growth going forward as it leverages strong market momentum and new acquisitions.” Builds its footprint through placements.and expanded distribution… The company has a wide spread of distribution sources which provides it multiple channels for sustained growth and also avoids volatility in any one sector.

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In light of these prospects, Hughes rates this stock as a Buy with a $26 price target showing 38% potential gains for the next 12 months. (To see Hughes’ track record, Click here,

All six of the recent Wall Street analyst on Skyward agree that this new stock is a Buy, giving it a unanimous Strong Buy consensus rating. The average price target of $24 suggests an upside of 27% from the current trade price of $18.85. ,View SKWD Stock Forecast on TipRanks,


To find great ideas for stocks trading at attractive valuations, visit TipRanks. best stocks to buyA newly launched tool that unifies all the equity insights from TipRanks.

Disclaimer: The views expressed in this article are those of select analysts only. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.