Investing

4 Recent IPOs Have Potential for Some Huge Gains

Aveanna Healthcare

This stock has stayed some range-bound since the IPO, but it is certainly in the right space for 2021 and beyond. Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH) is the largest pediatric home care company in the United States, providing care to medically fragile children and adults in the comfort of their homes.

In addition, the company has an 11% market share in private duty nursing, with its next area of growth being adult home health and hospice (10% of pro forma revenues).

BofA Securities noted this after the company reported results:

The first quarter was at the midpoint of the preliminary range, and above our estimate on better revs and much better margins. Revenue and adjusted EBITDA guidance is essentially in line with our estimates/ consensus. Organic growth above market growth plus $150-200 million deals to drive revenue growth in the mid to high teens. Ample capacity to execute on mergers and acquisitions: cash post IPO, revolver, access to equity, credit markets – targets leverage of 4-4.5x. Home health deal pipeline is full. Reiterate Buy on the attractive growth profile and deal potential upside.

BofA Securities has a $14 price target, and here too no consensus was yet available. The shares ended Thursday trading at $11.65 apiece.

Coinbase

This cryptocurrency trading company has been on a wild ride since going public with a direct listing recently. Coinbase Global Inc. (NASDAQ: COIN) provides financial infrastructure and technology for the cryptocurrency economy.

The company provides a primary financial account for the cryptocurrency economy, a platform to invest, store, spend, earn and use crypto assets. It provides an online marketplace for hedge funds, money managers and corporations, as well as a platform with technology and services to developers, merchants and asset issuers that enables them to build applications that leverage cryptocurrency protocols. It serves retail users, institutions and ecosystem partners.

Goldman Sachs loves the company and noted this when the firm started coverage recently:

While we believe the core business today offers an attractive growth profile with the potential to drive high levels of profitability, we see significant white space for new initiatives to drive more stable and recurring revenue streams to complement the core trading business over the longer term. If meaningful parts of the economy can transition to blockchain and crypto-native technology over time we see significant opportunity for Coinbase to benefit from its status as a critical element of the financial infrastructure for the ecosystem.

The $306 Goldman Sachs price target is much lower than the $402.07 consensus target, but Coinbase stock closed at $247.09 a share on Thursday.