3 Recent IPOs Wall Street Predicts Could Rally by 45% or More

While most of the economies were severely affected by the COVID-19 pandemic last year, it was a great year for IPOs, which were  driven by a low-interest-rate environment and the low-cost listing options, such as the special purpose acquisition companies (SPACs) route. In total, 480 companies went public in the U.S. last year. The IPO transaction rate has been…

even higher so far this year, with 536 IPOs already executed, according to Stock Analysis.

Because the Fed is not expected to increase benchmark interest rates anytime soon, more companies are expected to go public this year. Investors’ increasing interest in IPO stocks is evident in the Renaissance IPO ETF’s (IPO) 10.4% gains over the past month compared to the SPDR S&P 500 Trust ETF’s (SPY) 1.4% returns.

Given the IPO boom, Wall Street believes Coinbase Global, Inc. (COIN – Get Rating), C3.ai, Inc. (AI – Get Rating), and Similarweb Ltd. (SMWB – Get Rating), which went public recently, could rally robustly in the coming months.

Coinbase Global, Inc. (COIN – Get Rating)

COIN provides financial infrastructure and technology for the crypto economy. The company provides a primary financial account for the crypto economy, a platform to invest, store, spend, earn, and use crypto assets, and an online marketplace for hedge funds, money managers, and corporations, among others. COIN’s shares hit their  $429.54  all-time high  on their  market debut on April 14, 2021, before closing at $328.28.

On May 20, COIN priced $1.25 billion of  convertible senior notes. The capital raising  could bolster COIN’s balance sheet with low-cost capital, maintain its operating freedom, minimize dilution and expand its ability to fuel innovation and growth regardless of market conditions.

COIN’s revenue increased 791.7% year-over-year to $1.98 billion for its fiscal first quarter, ended March 31, 2021. Its operating income grew 2,447.3% year-over-year to $987.71 million. Its net income came in at $771.46 million, which represents a 2,312.8% year-over-year increase. The company’s adjusted EBITDA was $1.12 billion, up 1,922.2% year-over-year.

The company’s revenue is expected to increase 402.1% year-over-year to $6.41 billion in its fiscal year 2021. COIN shares have lost 0.8% over the past month to close yesterday’s trading session at $222.60. However, Wall Street analysts expect the stock to hit $381.93 in the near term, which indicates a potential  71.6% gain.

C3.ai, Inc. (AI – Get Rating)

AI operates as an enterprise artificial intelligence software company. It offers integrated turnkey enterprise artificial intelligence applications for various market segments, including oil and gas, chemicals, utilities and manufacturing. Its shares more than doubled in their  market debut on December 9, 2020.

This month, AI announced a strategic partnership with NCS that is focused on delivering enterprise artificial intelligence solutions to clients in Southeast Asia (SEA) and Australia/New Zealand (ANZ) across multiple industries. The partnership  is…

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