3 Tech IPOs from 2021 Wall Street Predicts Will Rally More Than 40% in 2022

Technology has become an integral part of life today.  Last year’s stay-at-home mandates, the popularity of remote working, and increasing demand for digital transformation across almost every sector are boosting the tech industry’s prospects. In addition…

space tourism, cryptocurrencies, non-fungible tokens (NFTs), and the metaverse have gained mainstream attention, and the tech sector is showing signs of exuberant growth.

By 2025, there are expected to be 75 billion connected devices globally, bringing the Internet of Things (IoT) number to thrice the 2019 level. Moreover, the so-called ‘Santa rally’ commenced this week with the tech industry taking the lead in driving the benchmark indices to all-time highs.

The Technology Select Sector SPDR Fund (XLK) has gained 19.7% over the past six months, outperforming the broader SPDR S&P 500 ETF Trust’s (SPY) 11.6% gains over the same period. Given the backdrop, Wall Street analysts predict that tech stocks ironSource Ltd. (IS – Get Rating), Flywire Corporation (FLYW – Get Rating), and Cognyte Software Ltd. (CGNT – Get Rating) will rally by more than 40%. These stocks went public this year.

ironSource Ltd. (IS – Get Rating)

IS, which is based in Tel Aviv-Yafo, Israel, operates as a business platform for app developers and mobile operators. The company operates through two platforms–its Sonic solution suite for developing and monetizing apps, games, and content and its Aura solution suite for relevant content to enhance device usage. The company went public through a reverse merger with blank check company Thoma Bravo Advantage on June 29, 2021.

On October 25, IS announced that it had entered an agreement to acquire Bidalgo, a marketing software company. The acquisition is expected to enhance IS’ portfolio of marketing-focused products and strengthen its market presence across the App economy.

On October 21, IS declared the launch of Mediation Custom Adapters that enable developers to access any network by leveraging the company’s mediation tools. The product should add to the company’s revenue stream.

For its fiscal third quarter, ended September 30, IS’ revenue increased 59.6% year-over-year to $140.45 million. Its non-GAAP gross profit improved 63.5% from the prior-year quarter to $124.41 million. Its non-GAAP net income and non-GAAP net income per ordinary share came in at $46.27 million and $0.04, respectively, up 76.4% and 33.3% from the same period last year.

The $0.10 consensus EPS estimate for the next year (fiscal 2022) indicates a 66.7% year-over-year increase. And the $712.06 million consensus revenue estimate for the coming year reflects a 31.8% rise from the current year.

The stock has gained 3.2% in price intraday to close yesterday’s trading session at $7.80.

The 11 Wall Street analysts rating IS have rated it Buy. The 12-month median price target of $14.25 indicates an 82.7% potential upside. The price targets range from a low of $10.50 to a high of $16.00.

 

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Flywire Corporation (FLYW – Get Rating)

Boston-based FLYW is a payment-enabling software company that operates in the United States and globally. The company’s platform enables payment flows across payment types, options, and multiple currencies, as well as direct connections to alternative payment methods. It went public in a traditional IPO process on May 26, 2021, on Nasdaq Global Select Market.

On December 15, FLYW announced that it had acquired WPM, a software provider that enables secure payment experiences for educational institutions in the United Kingdom. The acquisition is expected to increase FLYW’s existing education payments business, expand its customer base, and bolster its market share in the education sector of the U.K.

In September…

 

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