The Analysts Are Bullish On These Recent Tech IPOs
IPOs offer one of the best opportunities for investors to cash in on a new and budding business. IPOs also offer some of the biggest risks to investors because you just can't know what a company is worth until it gets floated on the market. Lately, the trend is to float the IPO with the highest price possible which only means losses for the first traders who buy the shares. Even so, wild fluctuations in price are usually the name of the game until the market is able to stabilize. With this in mind, we think it wise to wait before jumping into a newly released IPO and to wait until there's a clear sign of long-term oriented market interest. Today we're looking at 3 recently IPO’d stocks that we think have at least 20% upside sitting on the table.
ForgeRock Is The Bedrock Of Digital Security
ForgeRock (NYSE: FORG) operates a digital security platform focused on identification. The company manages the identities of individuals, organizations, and businesses helping them navigate today's digital universe. The stock came to market about 2 weeks ago and has seen some volatility in price action in the time since. The stock is now exiting the post-IPO quiet period and garnering the attention of the analyst.
Eight analysts have come out to issue what amounts to a Buy/Strong Buy rating with a consensus price target of $38.89. This assumes a 17% upside from the current price action but doesn’t reveal the range of price targets. The high price target of $45 is held by Cowen and assumes more than 36% upside for this stock. Shares of ForgeRock appear to have hit a bottom just above $31 and may be ready to move higher.
Thought Works Holdings Inc., Eating today's digital transformation
ThoughtWorks Holdings Inc. (NASDAQ: TWKS) is a technology consulting firm that operates globally to assist new tech-based businesses to succeed in today's digital world. Its services are cloud-centric which we view as a must in today's operating environment. No fewer than 11 analysts have come out with positive comments on this stock in the wake of its IPO and the general consensus is a Buy. Three of the eleven analysts rate the stock as Neutral but, in our opinion, initiating at Neutral Or Hold amounts to a Buy.
The consensus price target for the stock is just over $32 which assumes a 22% upside with even more at the high end of the range. The high price target of $35 was set by Wedbush which rates the stock at Outperform. Shares of ThoughtWorks Holdings have also recently hit what looks like a bottom and may be ready to move higher. The question, however, is whether price action will begin moving higher from its current level or if it will retest the recent lows near $25 first?
Sportradar Group AG Should Be On Your Radar
Sportradar AG (NASDAQ: SRAD) is a UK-based technology company providing data for sports leagues, casinos, and gambling establishments internationally. The company has been in business since 2001 and offers an end-to-end package to its clients that includes onboarding and financial services. At least eleven major sell-side analysts have come out with positive ratings on the stock have a consensus sentiment that amounts to a Buy/Strong Buy. The Pricetargets.com consensus of $28.25 assumes 20% upside for the stock while the high end of the range adds another 630 basis points to that target.
Needham analyst Bernie McTernan had this to say about the company, "We see the shares as a compelling, market share-agnostic way of benefiting from the growth of sports betting globally and the increasing importance of in-game betting… We view data distributors as an attractive way for investors to gain exposure to the global sports betting market without the market share risk facing B2C operators and in-sourcing risk facing B2B technology providers."
Shares of this stock are likewise trading near a bottom and look ready to move higher. Earnings are expected within the next few weeks and could provide the catalyst to get this market moving. In our view, a move above the all-time high of $28.22 would open the door to a much bigger move than to $30. A move to the $35 would be more in line with the technical picture.
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