Initial public offerings (IPOs) are often the most common route companies use to hit the public markets and raise money to grow. In the first couple of months of 2022, a market downturn pushed the Nasdaq into bear market territory meaning that the money IPOs raised until May of this year was just $2.1 billion.
In such an environment, start-ups are reluctant to go public, while investors and venture capitalists are more cautious with their investments overall. In short, this market environment requires more due diligence and higher risk appetites when investing.
Thus, Finbold analyzed the TipRanks database to identify three recent IPOs that occurred in May but are already on the radar of Wall Street analysts.
PepGen Inc. (NASDAQ: PEPG)
Is a Massachusetts-based biotech firm focusing its research on neurological and neuromuscular diseases, utilizing a proprietary development platform based on Enhanced Delivery Oligonucleotides (EDOs).
Meanwhile, its Duchenne muscular dystrophy drugs EXONDYS 51 and SRP-5051 have validated the approach in PGN-EDO51, PepGen’s lead product in Phase 1 clinical trials for the treatment of Duchenne muscular dystrophy. The company is currently operating in the red, with a net loss of $17.3 million in its latest earnings release.
Despite the brief trading period, the short-term trend is negative, but the long-term trend is still positive, with considerably lower volume noted in the last few trading sessions. Over the past month, the shares traded from $8.62 to $11.99, staying below all moving averages.
Technical analysis indicates a support zone from $9.36 to $9.37, with the resistance at $10.67.
TipRanks analysts rate PEPG shares a ‘strong buy,’ seeing the average price in the next 12 months reaching $27.00, 176.07% higher than the current trading price of $9.78. Equally important, all three TipRanks analysts covering the company have a buy rating.
ProFrac Holding Corporation (NASDAQ: PFHC)
ProFrac is a fracking service provider offering services and solutions to the North American hydrocarbon industry, helping the oil and gas industry with exploration and production.
With its first earnings report released as a public company, the firm showed revenue of $589.84 million, a 237.4% year-on-year (YoY) increase, beating estimates by $26.88 million. The company is deploying its first electric fleet during the third quarter and expects to average approximately 31 active fleets for the full quarter, which could help the company save money and remain “green.”
Thus, shares have been trading in a wide range from $16.71 to $21.97, over the past month, with a positive long-term trend. Currently, PFHC is in the middle of its 52-week range, with a support line at $19.32 and a resistance at $20.94.
Furthermore, analysts rate the shares a ‘strong buy,’ predicting that over the next 12 months, the average price the stock could fetch could be $26.93, 36.08% higher than the current trading price of $19.79.
Hanover Bancorp, Inc. (NASDAQ: HNVR)
Hanover Bancorp was established in 2009, representing a financial entity that owns the Hanover Community Bank with $1.6 billion in assets and operations in New York, New Jersey.
Since 2016, its total asset base grew from $362 million to $1.46 billion in Q1 2022; however, in its third fiscal quarter, the bank reported revenues of $16.65 million, a 50% growth YoY, but a miss of estimates by $0.85 million. Similarly, the reported earnings per share (EPS) were $0.80, a miss of $0.02. Yet, the bank offers a $0.10 per share dividend, a yield of 2.07%.
Meanwhile, on Wall Street, analysts rate the shares a moderate buy, seeing the average price in the next 12 months reaching $25.75, 28.69% higher than the current trading price of $20.01.
Despite the slight pullback seen in IPO numbers and financing, there are still interesting companies that have IPO-ed recently or are planning to do so.
The above three companies represent firms that went public this year and that are garnering the attention of analysts; therefore, keeping them on a watchlist and looking for potential entry positions could yield gains in the future.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.