Few market events are more important than IPOs. The entry of new stocks into the mix keeps the markets fresh, brings new capital into the aggregate, and adds new options for investors.
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After peaking in 2021 with 416 new listings, IPO activity plunged to just 90 in 2022. That slump, however, turned out to be short-lived, and the market has been steadily regaining its footing – with 2025 now on pace to easily surpass last year’s total.
That turnaround shows up clearly in the second-quarter numbers, with 96 new stocks entering the market between April and June and raising $15.6 billion in fresh capital. The quarter’s tally included 51 traditional IPOs bringing in $6.7 billion, 44 SPAC deals raising $8.5 billion, and a single direct offering worth $390 million. Not only was this a sharp increase over 2Q24, when 54 offerings raised $10.6 billion, it also represented a solid step up from 1Q25’s 79 deals and $11.4 billion raised.
Such resilience stands out given the backdrop of persistent inflation concerns and policy uncertainty, particularly around trade and tariffs. Yet, despite those headwinds, investor sentiment improved as the quarter wore on, fueling optimism that the IPO momentum could be sustained. And with momentum comes a natural question: which of these new listings actually merit investors’ attention?
Analysts at Morgan Stanley have taken a closer look at two of the newest entrants, ultimately recommending only one as a Buy. To see whether the rest of the Street shares their view, we turned to the TipRanks database. Let’s dive in.
Figma (FIG)
The first stock on our list, Figma, is a pure-play tech company that offers users a suite of tools to turn original ideas into first-class digital products. The company was founded in 2012 as a design tool for digital creators, and today has matured into a fully connected AI-powered platform capable of smoothing the path from initial ideas to final products. The platform is meant to bring development teams together and keep them on the same page, while the AI helps to guide them through the creative process.
That broad functionality has driven rapid adoption. Figma’s platform supports every step of digital creation, from concept sketching to final coding, and the company now counts more than 13 million monthly active users and roughly 450,000 paying customers. Its reach extends across industries, with high-profile clients such as Duolingo, The New York Times, Zoom, Atlassian, and Dropbox, and with most Fortune 500 companies relying on Figma’s services.
Given that scale, it’s no surprise investors were eager to get a piece of the company when it went public on July 31. The company priced 36,937,080 shares at $33 each, slightly above the expected range, and split the offering between new shares and stockholder sales. In total, the IPO raised $1.22 billion, with $411.6 million attributable to Figma itself.
The debut drew immediate attention. FIG shares closed at $115 on day one before pulling back into the $70s, where they trade today. Even after the retreat, Figma still commands a market capitalization of nearly $34 billion.
Figma’s IPO has caught the attention of Morgan Stanley analyst Elizabeth Porter, who notes both strengths and weaknesses for investors to consider. On the positive side is Figma’s effective use of generative AI, while the stock’s high valuation presents a negative for investors.
“While GenAI stands to transform digital product development, Figma is well-positioned given its dominance in the structurally important design market and status as the platform for design work. While early days, GenAI may be accretive to Figma’s TAM and revenue via Figma Make (launched in Q2), though an increasingly competitive market for GenAI prototyping tools likely stokes debate on Figma’s realizable market share… We view Figma as a market-leading platform, but valuation at a market-leading multiple is pricing a long runway for growth, limiting the near-term risk/reward and leaving us on the sidelines,” Porter opined.
In line with that balanced view, Porter assigns FIG stock an Equal Weight (i.e., Neutral) rating and an $80 price target, suggesting a 14% upside potential. (To watch Porter’s track record, click here)
Overall, FIG has received 7 analyst reviews to date, split between 2 Buys and 5 Holds, for a Moderate Buy consensus rating. With the shares trading at $70.28 against an average price target of $75, Wall Street is pointing to ~7% potential upside from current levels. (See FIG stock forecast)
Shoulder Innovations (SI)
From high tech we’ll move over to med tech. Shoulder Innovations is a medical technology company at the commercial stage, focused on bringing new implant devices to the field of surgical shoulder repair. The company has developed InSet Glenoid technology, an implant system designed for shoulder arthroplasty. This proprietary implant is designed to counteract the ‘rocking horse’ forces put on the shoulder joint by the natural rotational movements of the humerus. These forces present a major complication in traditional shoulder replacement operations; the InSet Glenoid is designed to be anchored into the bone, providing a stable surface for the joint that markedly reduces implant displacement.
In addition to the glenoid implant, Shoulder Innovations also offers a suite of enabling technologies designed to facilitate the shoulder replacement operation for a better patient outcome. These include specialized software and support, efficient instrument systems, and collaboration between surgeons. Taken together with implant technology, Shoulder Innovations’ complete package addresses the unique challenges of shoulder surgeries.
In July of this year, the company made two major announcements regarding raising new capital. The first was the closing of a $40 million convertible notes financing by Fidelity Management & Research Company, with proceeds to be used for continued commercialization activities of the company’s advanced implant systems. The second announcement involved the IPO.
The initial pricing was announced on July 30, when the company stated that it planned to put 5 million shares on the market at $15 each. The shares started trading on July 31 and closed that day at $15.05. The stock has been volatile since then, dipping twice to as low as $12, and today is trading near its opening price. In terms of total capital, the IPO raised $75 million, and the company currently has a market cap of $300 million.
Against this backdrop, Morgan Stanley’s Patrick Wood has taken notice. The analyst points to both the strength of the company’s core implant technology and the broader growth potential as reasons for optimism.
“Shoulder Innovations (SI) offers a differentiated product line within the fast growing (>10%) US shoulder arthroplasty market ($1.7bn in size). Its products offer better range of motion for patients, lower revisions rates, and greater stability, while offering a simplified workflow for surgeons (through its 2 set system) that lowers storage and sterilization requirements (potentially up to $3,500 per case). Comfortably growing organic sales at 30% a year (which as per below we view as sustainable), and trading on just c. 2.7x our 2026 sales estimates (or a c. 40% discount vs. the growth-adjusted peer group), the stock looks materially too cheap vs. the growth profile, differentiated offering, and strong underlying market growth,” Wood opined.
To this end, Wood rates SI stock as Overweight (i.e., Buy), and he sets his price target at $18, indicating his confidence in a 21% gain on the one-year horizon. (To watch Wood’s track record, click here)
Shoulder Innovations has 3 recent analyst reviews on record, and they are all positive, making the Strong Buy consensus rating unanimous. The stock is selling for $14.82, and its $20.33 average target price implies a 37% increase over the course of the coming year. (See SI stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.