Virtually every corner of the stock market had a horrible 2022, including initial public offerings. The Renaissance IPO ETF (IPO), which tracks the performance of newly-public companies, plunged 57% in 2022, notching its biggest one-year decline on record. That comes just two years after its biggest annual gain ever. Total proceeds from new companies going public dropped more than $7 billion in 2022, reaching their lowest level since at least 2013, Renaissance data showed. Despite a sluggish year for IPOs, analysts see big gains ahead for some stocks that started trading in 2022. CNBC Pro combed through the 2022 IPOs for companies covered by at least seven analysts, with the average price target implying upside of at least 15%. Of those, more than 60% of analysts have buy ratings on them. Among the names that made the list is Mobileye Global, a company specializing in assisted and autonomous driving technology. The stock has risen more than 66% since its public market debut in October. Mobileye is covered by 14 analysts, and roughly two-thirds of them rate the stock as a buy. On average, analysts see the stock rising about 20% over the next 12 months. “We expect Mobileye to replicate its success in ADAS [advanced driver assistance systems] in Autonomous Driving to position itself for strong robust growth,” wrote JPMorgan analyst Samik Chatterjee, who rates the stock overweight. “Broader ADAS adoption had already delivered revenue growth of 34% between 2015 and 2021. Increasing CPV [cooperative perception on vehicles] led by adoption of Enhanced ADAS, in combination with Supervision, Chauffeur, and [mobility as a service] platforms, will enable scaling ADAS to [autonomous vehicles]driving 38% revenue CAGR between 2022 and 2030, implying revenue of $23 billion exiting the decade,” the analyst wrote. Eye care products maker Bausch + Lomb also made the list, with 66% of analysts rating it a buy. Analysts on average see the stock rallying 25% in the next year. Bausch + Lomb has dropped 13% since going public in May. Other stocks that made the list are CinCor Pharma , Corebridge Financial and Credo Technology . — CNBC’s Michael Bloom and Gina Francolla contributed reporting.
