2 New IPO Stocks in Town; J.P. Morgan Says ‘Buy’

The market for IPOs has been volatile in recent years. New offerings peaked in 2021, just as the COVID crisis was winding down, with a record-high number of 1,033 IPOs that year. That collapsed to just 154 in 2023 – but started climbing again last year, when 238 companies went public.

That momentum has kept up this year, supported by several factors, including a generally optimistic market environment – note that both the S&P 500 and the NASDAQ are standing near their own record highs after six volatile months. In addition, investors are pricing in at least three, and maybe more, interest rate cuts from the Fed this year, which could make stocks look more attractive.

At the end of 1Q25, there had been 75 IPOs on Wall Street, about 74% more than in the first quarter of 2024. The 2025 figure is up to 176 for the first half, putting this year’s IPOs on a firm track to outpace last year’s total. For stock market investors, a boost in IPO activity is a positive development; it increases the number and variety of potential investment targets.

The stock analysts at JPMorgan know this, and they are busy taking the measure of the new IPO stocks in town. On two, in particular, the bank’s experts are telling investors to ‘Buy;’ let’s take a closer look at these choices and find out what makes them such compelling new entries in today’s market. And with some help from the TipRanks database, we can see what the rest of the Street makes of these JPM choices.

Chime Financial (CHYM)

The first new stock we’ll look at comes from Chime Financial, a San Francisco-based fintech company that specializes in bringing high-quality financial and banking services to everyday people. Chime partners with two traditional bank companies, The Bancorp Bank and Stride Bank, to ensure that customers have access to federally insured bank accounts supplemented by a range of other financial products.

This fintech was founded in 2012, and from its beginning, it was structured to provide the maximum convenience for marginal bank customers – people who have to stretch to make ends meet, or even rely on payday loans. Chime offers this clientele an easier entry into normal banking services, without the burden of high-interest loans or credit, and without overdraft fees. Chime’s business model is built around the interchange fees charged to merchants for accepting card payments.

The company does not rely on overdraft fees, monthly service charges, or minimum balances, and allows customers to receive a two-day advance on regular salary deposits and to use a secured credit card to build a stronger credit profile. These services are designed to balance the benefit of the bank with the good of the customer; long-term, a customer who develops stronger credit and builds savings is recognized as a net asset for the bank.

In May of this year, Chime filed its registration for an IPO, and the stock started trading on the NASDAQ on Thursday, June 12. The stock was priced at $27 per share, above the initial expectations of $24 to $26. The IPO event saw 32 million shares go up for sale to the public; of that total, 6.1 million shares were sold by existing shareholders. The company itself put 25.9 million shares up for sale, and its own proceeds came from the sale of those shares. In all, the IPO raised $864 million in gross proceeds, with the company realizing approximately $700 million.

This newly public fintech has caught the attention of JPM’s Tien-tsin Huang, who is impressed by the company’s ability to build a successful model based on reaching out to low-heeled banking customers. Huang writes, “Chime cracked the code of scaling financial services as a non-bank by earning the trust of everyday Americans with a ‘low cost, no cost’ banking model that aims to improve the financial lives of those historically penalized, if not effectively excluded, by the traditional banking system… We see attractive earnings power potential as Chime grows its consumer platform of 8.6M members, with a revenue model that is asset light and spend-centric, affording the company unique insights to extend compelling and low-fee liquidity/lending products, which in turn drives increased loyalty and incremental profits, further attracting new users in a virtuous cycle to support our forecast for 20% compounded revenue growth and >10pts of adj. EBITDA margin expansion through 2027, ranking CHYM as a top decile grower in our coverage.”

Huang goes on to rate CHYM as Overweight (i.e., Buy), and he sets a $40 price target that suggests a one-year upside potential for the shares of 29%. (To watch Huang’s track record, click here)

Overall, the Street has rated this fintech stock as a Moderate Buy, based on 13 recent analyst recommendations, including 9 to Buy, 3 to Hold, and 1 to Sell. The shares are currently priced at $31.03, and their $36.83 average target price implies an upside of 19% in the next 12 months. (See CHYM stock forecast)

Voyager Technologies (VOYG)

Denver-based Voyager Technologies, the second fresh IPO stock we’ll look at, works in the field of space technologies. The company is well-known as a provider of space tech, science systems, and critical mission services that support both government and private-sector space programs. Voyager can work with spacecraft and satellite operators from low Earth orbit and out to interplanetary trajectories.

Voyager was founded in 2019, and one of its first major projects, the Bishop Airlock, became, in 2020, the first permanent commercial feature added to the International Space Station. Voyager project and system offerings for the commercial space industry include such specialties as mechanical design and structural analysis; software, systems, and propulsion engineering; and data management and analysis. On the hardware side, the company can process payloads, develop avionics, and even inspect and assemble prototypes.

Turning to the defense sector, we find that Voyager is at the forefront of several increasingly important technologies. Among these is the company’s propulsion technology, which ‘makes solids perform like liquids.’ That is, Voyager can deploy long-duration precision thruster systems capable of accurately orienting and steering missile interceptors, using solid propulsion technology that can emulate the high performance of liquid or cold-gas systems. This is an important achievement, as the solid propulsion technology allows for faster deployments and lower costs.

Voyager is also a leader in a joint venture with NASA, the Starlab, designed to produce the next generation of orbiting space stations. The company has been awarded more than $217 million for development in this venture.

This past June 10, Voyager priced its IPO, planning on selling 12,348,387 shares of stock on the market at $31 each. In the event, Voyager sold 14,200,645, a total that included additional shares purchased by the underwriters. The net proceeds from the sale came to $402.3 million.

For Seth Seifman, who covers this space stock for JPM, the key point here is Voyager’s sound position with the defense industry. Seifman uses that as a starting point, and writes of the stock, “Voyager is exceptionally well-positioned for growth in defense with DNS expected to outpace peer growth in defense driven by exposure to missile defense interceptors, namely the NGI program. Voyager is also well positioned for growth from increased spending on national security space. Voyager can participate in advancing intelligence capabilities via a partnership with Palantir and its TALIX software. Starlab is a JV in which Voyager holds a 67% stake and we see the opportunity for the space station to create significant value for the company with significant ownership in a limited amount of real estate available in space and – if successful – a proven concept for future stations.”

The JPM analyst rates shares in VOYG as Overweight (i.e., Buy), and he complements that rating with a $52 price target that implies a gain of 26% by this time next year. (To watch Seifman’s track record, click here)

There are 5 reviews on record for this stock, and they break down 3 to 2 in favor of Buy over Hold for a Moderate Buy consensus rating. VOYG shares are priced at $41.35 and have an average target price of $48.60, suggesting that the stock has a one-year upside potential of 17.5%. (See VOYG stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

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.