2 Recent Healthcare IPOs Can Soar More than 30%

According to EY’s Global IPO Trends Q2 2024, 80 new IPOs raised $17.8 billion in capital in the US between January and June. Better economic and business prospects were the leading cause of the rise in IPOs.

Saqib Iqbal, a financial analyst at Trading.biz, thinks now is the right time to act on recent IPOs as the case for the Feds rate cut in September looks bright.

• Due to better economic prospects, recent IPOs raised $17.8 billion in the US in the year’s first half.
• Despite a 34% drop, TEM’s Google-backing and $7 billion valuation makes it a compelling investment.
• WAY has shown strong performance, with potential for a 35% rise by year-end.

“The storyline for a September cut would continue to develop if the data continues to indicate a contracting US job market and declining inflation. This will indicate that investors should now search for the most recent public offerings. Two such healthcare IPOs are Tempus AI (NASDAQ: TEM) and Waystar Holding Corp. (NASDAQ: WAY).”

Tempus AI (NASDAQ: TEM)

Tempus AI uses artificial intelligence to analyze medical test results, enabling doctors to treat patients more precisely. The firm’s revenue increased by 183% between 2002 and 2023.

On its first trading day, the price of Tempus AI shares was $37, the upper end of its intended range of $35 to $37. Due to its early success, the firm was valued at up to $7 billion.

Currently, the stock is down by 34%, but Google’s financial backing says a lot about TEM. Therefore, Saqib believes this popular recent IPO will serve aggressive investors well.

Waystar Holding Corp. (NASDAQ: WAY)

Waystar Holding Corp. is a healthcare-focused software firm that offers streamlined payment methods to healthcare professionals. For the first three months of 2024, Waystar earned the top spot in five categories for Healthcare Payment Software Platforms.

In Q1 2024, Waystar’s sales were close to $225 million, while its net loss was about $16 million. The stock was priced at $20 on the first trading day and has since gained more than 3%. If the projected growth continues, WAY can rise to $27 by the end of this year.