3 Recent IPOs That Wall Street Predicts Will Rally 33% or More

Last year proved to be a record-breaking year for initial public offerings (IPOs). According to data from IPO watchers at Renaissance Capital, IPOs in the United States raised more than $142 billion in proceeds, amid a flood of…

government stimulus, soaring valuations, and low-interest rates.

However, the interest rate environment will reverse soon, given Fed’s hawkish stance to deal with the inflationary pressure. According to Bank of America Corp. (BAC) economists, the Federal Reserve is expected to execute seven quarter percentage point rate increases in 2022. This could lead to a continued market retracement.

Which is why you want to look to invest in fundamentally sound stocks, such as recent IPOs Organon & Co. (OGN – Get Rating), Victoria’s Secret & Co. (VSCO – Get Rating), and LegalZoom.com, Inc. (LZ – Get Rating).  Wall Street is forecasting that these stocks will rally by more than 33% in the next 12 months.

Organon & Co. (OGN – Get Rating)

OGN is a science-based pharmaceutical company that delivers health solutions through its portfolio of prescription therapies pertaining to women’s health and biosimilars. The company started trading on May 14, 2021, on a ‘when-issued’ basis. OGN announced its launch as a separate company from Merck & Co. Inc. (MRK) on June 3, 2021.

On January 5, OGN announced that the U.S. Food and Drug Administration (FDA) has accepted for review the supplemental Biologics License Application (sBLA) for a citrate-free, high-concentration formulation of SB5. The company expects to commercialize SB5 in the U.S. on or after July 1, 2023, which should bolster its revenue stream.

On December 13, OGN announced the closure of the acquisition of Forendo Pharma, a clinical-stage drug development company. The acquisition should expand the company’s operative capability and enable treatment options for endometriosis.

For the nine months ended September 30, OGN’s net cash flows provided by operating activities from continuing operations increased 17.4% year-over-year to $2.11 billion, while total cash and cash equivalent balance rose 164.6% from the prior-year period to $1.01 billion.

Analysts expect OGN’s revenue to increase 1.2% year-over-year to $6.35 billion for the fiscal year 2022.

The stock has gained 8.3% over the past month and 7.3% over the past five days to close yesterday’s trading session at $32.99.

Two Wall Street analysts rating OGN have rated it Buy. The 12-month median price target of $44.00 indicates a 33.4% potential upside. The price targets range from a low of $42.00 to a high of $46.00.

Victoria’s Secret & Co. (VSCO – Get Rating)

VSCO operates as a specialty retailer of women’s intimate, personal care beauty products worldwide. The company’s offerings include lingerie, casual sleepwear, swimwear, and athleisure. It went public on August 3, 2021, after separating from Bath & Body Works Inc. (BBWI).

On January 25, VSCO announced a partnership agreement with Regina Miracle International (Holdings) Limited, pertaining to its existing company-owned business in China. The company aims to grow its China business by forming a joint venture (JV). VSCO is also expected to receive $45 million from Regina Miracle as consideration for its investment in the JV.

On December 29, VSCO entered into an…

 

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