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A Tale of 3 IPO Stocks; 2 to Buy and 1 to Avoid
Perhaps the most exciting aspect of the stock market is its dynamism. The trading environment is in a constant state of flux, whether it’s the daily shifts in price, the longer changes in market trends, or, most exciting for investors, the entry of new stocks into the game. IPOs have always attracted attention, for good reason – they introduce new players, add new variables, and open new opportunities.But not all IPOs are created equal. Some companies make instant waves while others slide by under the radar. Some companies just don’t impress investors, and fail to sell all the offered shares, while others sell out and have to offer more. And some stocks make their debut with the wrong pricing – up or down, market forces will make that correction in short order. Investors should love IPOs – and should practice due diligence.And that’s where research firm BTIG comes in. The firm's analysts have been looking under the hood of several newly public companies. Three of these companies held their public offerings just this past September. Using TipRanks’ Stock Comparison tool, we lined up the three alongside each other to get the lowdown on what the near-term holds for these IPO players.Sumo Logic (SUMO)First up is Sumo Logic, a data analytics company offering cloud-based services in security and operations for business intelligence apps. Sumo Logic started trading on the NASDAQ index on September 17, with an opening price of $22 per share. That was above the $17 to $21 range expected, and set a strong tone for the IPO. In all, the company sold 14.8 million shares in the initial offering, plus another 2.22 million when the underwriters exercised their purchase option. The sale brought in $374.4 million. Sumo is prime example of a successful IPO, attracting investors and brining the company’s total market cap to $2.19 billion in its wake. Initiating coverage of this stock for BTIG, 5-star analyst Gray Powell describes SUMO as ‘heavy-caliber.’ “We think that machine data analytics platforms like SUMO’s should benefit as companies increasingly adopt digital transformation strategies. In our opinion, SUMO is well positioned on this theme… it is the only pure play multi-tenant cloud-native company with a focus on the IT monitoring and Security Information and Event Management markets… we see a compelling long-term growth opportunity,” Powell opined.In line with his bullish comments, Powell rates the stock a Buy, and his $29 price target suggests a 31% one-year upside potential. (To watch Powell’s track record, click here)In its short time on the public markets, SUMO has garnered 5 Buy reviews and 3 Holds, making the analyst consensus rating a Moderate Buy. The stock is priced at $22.19; it has an average price target of $28.29, giving it a 27.5% upside for the coming 12 months. (See SUMO stock analysis on TipRanks)Broadstone Net Lease (BNL)The next stock on our list is a real estate investment trust with a long history in private ownership. Broadstone acquires, for ownership and management, a wide-ranging portfolio of commercial real estate properties occupied by single tenants on long-term net leases. At the end of 2Q20, shortly before the IPO, Broadstone boasted 633 properties, mainly in the US but one in Canada, valued at some $4 billion. The company acquires properties in the healthcare, industrial, office, restaurant, and retail sectors.In the IPO, which saw stock sales start on September 17, Broadstone opened at $17 per share and sold the 33.5 million shares expected. As in many successful IPOs, the underwriters are exercising their option, buying up an additional 5.025 million shares. The net proceeds from the IPO reached $533.5 million.In his initiation report for BTIG, analyst Michael Gorman noted Broadstone’s history but was particularly impressed by the stability and diversity of the portfolio. “The company recently completed its initial public offering but has assembled a 13-year track record of solid cash flows and growth as a private company. Moreover, while BNL does not specifically focus on investment-grade tenancy, it pursues a strategy designed to promote cash flow stability… At both the geographic and tenant-level the company has one of the most diversified portfolios, which is also likely to drive stability,” Gorman wrote.Gorman’s $20 price target implies an 18% upside for the stock, and supports his Buy rating. (To watch Gorman’s track record, click here)Overall, Broadstone has a Strong Buy rating from the analyst consensus, and it is unanimous – no fewer than 7 reviewers have given this stock the thumbs up. Shares are currently trading at $16.98, and the $20.71 average price target suggests it has room for 21% growth in the year ahead. (See BNL stock analysis on TipRanks)Snowflake (SNOW)Last and least is Snowflake, a software provider in the cloud-based data segment. Snowflake is a Silicon Valley tech company, valued at $67.5 billion. It started trading on September 16, and like the stocks above, its IPO was successful. The company saw investors pick up 28 million shares, at an opening price of $120, plus another 4.2 million purchased by the underwriters. The $3.36 billion raised by the sale made this the year’s largest IPO so far, an impressive feat given the ongoing pandemic crisis.Since opening at $120 per share, SNOW stock has doubled in price. Investors are clearly gravitating toward this software company. The company estimates >$560 million in revenue for FY21, for 114% growth year-over-year, and forward projections show the top line number hitting $1.75 billion within two years. Indeed, growth rates like that don’t come around every day.Rapid growth, however, also brings a drawback – investors must wonder if SNOW shares are close to maxing out their value. That is the key factor in analyst Gray Powell’s Neutral rating on SNOW.The BTIG analyst noted, “We believe SNOW is sitting in front of a very large secular growth opportunity as workloads migrate to cloud environments at an accelerating pace and customers increasingly look to utilize machine data to make better business decisions.” However, “We see limited upside and would await a better entry point on the stock.”Overall, Snowflake has drawn optimism mixed with caution when it comes to consensus opinion among sell-side analysts. Out of 22 analysts polled in the last 3 months, 9 are bullish, 11 remain sidelined, while 2 are bearish on the stock. With a modest 8.5% upside potential, the stock's consensus target price stands at $265.67. (See SNOW stock analysis on TipRanks)To find good ideas for IPO stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched 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.
TipRanks · 10/16 20:01
Broadstone Net Lease Provides Q3 Rent Collection Update, Has Received 95.5% Of Base Rents Due For Q2
ROCHESTER, N.Y., Oct. 15, 2020 (GLOBE NEWSWIRE) -- Broadstone Net Lease, Inc. (NYSE:BNL), an internally-managed real estate investment trust ("BNL" or the "Company"), today provided an update on its
Benzinga · 10/15 16:54
JP Morgan Initiates Coverage On Broadstone Net Lease with Overweight Rating, Announces Price Target of $20
JP Morgan initiates coverage on Broadstone Net Lease (NYSE:BNL) with a Overweight rating and announces Price Target of $20.
Benzinga · 10/12 09:05
U.S. IPO Week Ahead: Healthcare, Solar Panels, And Chinese Retail In A 9 IPO Week
Five biotechs, two medical device makers, a solar panel mounting manufacturer, and a Chinese retailer are scheduled to raise $2.0 billion in the week ahead.Several companies could join the IPO calendar early in the week, including McAfee and Datto Holding.Street research is expected for 15 companies.The lock-up for Renalytix AI will be expiring on Thursday, 10/15.
Seekingalpha · 10/11 20:55
Broadstone Net Lease- The K-Shaped Recovery Makes The Newest Net Lease REIT A Buy
Broadstone has a diversified portfolio of industrial, healthcare, office, retail, and restaurant properties.Essential tenants and long-term leases have protected the company from the negative effects of covid, demonstrated by high rental collection rates.$533.5 million raised from IPO available to make accretive acquisitions and pay down debt.Attractive valuation and prospective dividend.BNL will benefit from the net lease sector's K-shape recovery, as essential properties will outperform experiential real estate.
Seekingalpha · 10/11 19:20
The Cap Rate Conundrum Series: Net Lease REITs
We’re in the midst of a global pandemic, in which property valuations are up, down, and all around.As intelligent REIT investors, we must recognize that certain property sectors are being impacted more severely than others.This new paradigm has created opportunities for well-capitalized companies and catastrophes for others.Welcome to our all-new "Cap Rate Conundrum" series.
Seekingalpha · 09/29 11:00
Broadstone Net Lease - A Fair REIT Bet
Broadstone is a diversified, modestly leverage single-tenant REIT. Despite modest exposure to restaurants, hotels and retail, I find comfort in diversification and moderate leverage. A near 6% distribution yield looks compelling in this rate environment, and while looking fair, I see few exciting trigger here.
Seekingalpha · 09/21 09:12
U.S. IPO Weekly Recap: Snowflake's IPO Breaks Records In A Diverse 15-IPO Week
In the busiest week yet for the 2020 IPO market, 15 IPOs raised $8.7 billion.Snowflake took the spotlight, completing the largest software IPO ever and bagging the biggest billion-dollar pop in two decades.Eight SPACs joined the week's diverse group of IPOs.
Seekingalpha · 09/19 13:54
Broadstone Net Lease prices IPO at $17/share
Broadstone Net Lease (BNL) has priced its initial public offering of 33.5M Class A common stock at $17/share.Underwriters' over-allotment is an additional 5.025M Class A common stock.The shares are expected
Seekingalpha · 09/17 13:25
IPO Outlook For The Week: Snowflake and Amwell Lead Busy 12 IPO Lineup
Benzinga took a look at high profile IPOs coming in the second half of 2020. Six of those 13 companies could price the week of September 14. Here is a look at the 12 companies expected to go public.
Benzinga · 09/13 14:29
IPO Update: Broadstone Net Lease Seeks $603 Million IPO
Broadstone Net Lease has filed proposed terms for its U.S. IPO.The firm will operate as a REIT, owning primarily single-tenant net lease properties in the U.S.BNL expects to pay a 5.6% distribution yield; while this is uncertain due to Covid-19 effects, the IPO is worth considering for income investors.
Seekingalpha · 09/11 18:50
Broadstone Net Lease sets IPO terms
An internally-managed REIT trust, Broadstone Net Lease (BNL) plans to commence the roadshow for its proposed IPO.BNL has filed Form S-11 with the SEC to offer 33.5M shares of its Class A
Seekingalpha · 09/09 06:22
Good News Is Bad News
U.S. equity markets flirted with fresh all-time highs this week following a slate of better-than-expected economic data, which has ironically thrown a political curveball into the now-stalled fiscal stimulus negotiations.Gaining for six of the past seven weeks, the S&P 500 rose by 0.7% this week, pushing its post-pandemic rebound to more than 50%, ending within 1% of all-time record highs.Is the "Rates up, REITs down" paradigm back? On the final week of REIT earnings season, REITs finished lower by 1.6% with 11 of 18 property sectors finishing in negative territory.Aided by the WWII levels of fiscal stimulus over the last several months, retail sales jumped to all-time record highs on an annualized basis in July, climbing 1.2% from last month and 2.7% from the same month last year.Simon Property is on a shopping spree, as the mall REIT continues to make investments into distressed retail brands including Brooks Brothers, Lucky Brand, Forever 21, and potentially J.C. Penney.
Seekingalpha · 08/15 13:00
Broadstone Net Lease Initiates IPO Plan
Broadstone Net Lease has filed to raise public investment capital in an IPO.The firm owns and operates a portfolio of primarily single tenant net lease properties in the United States.BNL has grown its portfolio but due to a high proportion of restaurant tenants, is exposed to significant solvency risks due to the Covid-19 pandemic.
Seekingalpha · 08/11 14:57
Broadstone Net Lease Initiates IPO Plan
Broadstone Net Lease has filed to raise public investment capital in an IPO.The firm owns and operates a portfolio of primarily single tenant net lease properties in the United States.BNL has grown its portfolio but due to a high proportion of restaurant tenants, is exposed to significant solvency risks due to the Covid-19 pandemic.
Seekingalpha · 08/11 14:57
Broadstone Net Lease Initiates IPO Plan
Broadstone Net Lease has filed to raise public investment capital in an IPO.The firm owns and operates a portfolio of primarily single tenant net lease properties in the United States.BNL has grown its portfolio but due to a high proportion of restaurant tenants, is exposed to significant solvency risks due to the Covid-19 pandemic.
Seekingalpha · 08/11 14:57
Broadstone Net Lease Initiates IPO Plan
Broadstone Net Lease has filed to raise public investment capital in an IPO.The firm owns and operates a portfolio of primarily single tenant net lease properties in the United States.BNL has grown its portfolio but due to a high proportion of restaurant tenants, is exposed to significant solvency risks due to the Covid-19 pandemic.
Seekingalpha · 08/11 14:57
U.S. IPO Weekly Recap: BigCommerce's 201% First-Day Pop Breaks Records In An 8-IPO Week
Eight IPOs and nine SPACs entered the public markets this past week led by BigCommerce, which soared 201% in the best first-day pop for an IPO over $100 million in 15 years.On the flipside, Rackspace Technology returned to the public markets in the worst drop of 2020, shedding 22% on its first day and finishing the week down 27%.REIT Broadstone Net Lease and Chinese luxury EV maker Xpeng both filed for IPOs estimated to raise $500 million.
Seekingalpha · 08/08 20:54
Webull provides a variety of real-time BNL stock news. You can receive the latest news about Broadstone Net Lease, Inc. through multiple platforms. This information may help you make smarter investment decisions.
About BNL
Broadstone Net Lease, Inc. is a diversified, internally managed real estate investment trust (REIT). The Company acquires, owns, and manages primarily single-tenant, commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. It invests in net leased real estate across the industrial, healthcare, restaurant, office, and retail property sectors. Within the sectors, it focuses on manufacturing, distribution and warehouse, clinical, casual dining, quick service restaurant, strategic operations, corporate headquarters, food processing, flex/research and development, and cold storage. Its properties are occupied by approximately 182 different commercial tenants who operates over 168 different brands that are diversified across approximately 54 differing industries. The Company’s portfolio is comprised of approximately 27.4 million rentable square feet of operational space. The Company’s properties are located in United States and Canada.
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