On August 14, Tony Kim, Centerview Partners co-president, joined CNBC’s ‘Closing Bell: Overtime’ to discuss the IPO market and the dealmaking environment. Looking at the broader M&A landscape, the past 2 months have seen some of the biggest deals of the year. There have been 38 deals valued at over $10 billion so far in 2025, which is the most at this point in any year. Turning towards the IPO market, Kim attributed the strong first-day trading performances of companies to the fact that the IPO market, which had been weak, is now making a comeback. He said that companies are pricing their IPOs conservatively to ensure that they land well. He also noted that over the last decade, there have been about a dozen IPOs that saw a first-day gain of more than 150%. Kim also pointed out that this pent-up demand is concentrated in specific sectors like defense tech, AI, and crypto, with less demand for other industries.
Kim also acknowledged that M&A seemed robust. He explained that activity had briefly seized up in April after post-liberation day due to uncertainty, but the market has since settled. The deal pipeline began to build in June, July, and August, leading to the recent deal announcements. He also clarified that the tech sector is doing things differently. He mentioned a couple of recent big M&A deals but noted that the bigger trillion-dollar tech companies are pivoting away from traditional M&A. Instead, they are engaging in LIFT (licensing, IP, founders, and talent) transactions. These deals are investment partnerships that allow big tech companies to gain access to what they want without buying the entire company.
That being said, we’re here with a list of the 13 best IPO stocks to buy according to Wall Street analysts.
A financial adviser looking over a portfolio of securities and stocks.
Our Methodology
We first sifted through the Finviz stock screener to compile a list of the top new stocks that went public in the last 2 years. We then selected the 13 stocks with an upside potential of over 25% as of August 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
13 Best IPO Stocks to Buy According to Wall Street Analysts
13. OneStream Inc. (NASDAQ:OS)
Number of Hedge Fund Holders: 22
Average Upside Potential as of August 15: 39.62%
OneStream Inc. (NASDAQ:OS) is one of the best IPO stocks to buy according to Wall Street analysts. On August 8, Baird lowered the firm’s price target on OneStream to $26 from $28, while keeping an Outperform rating on the shares. The firm updated its model following Q2 2025 results, which showed steady performance.
OneStream’s total revenue grew by 26% year-over-year in Q2, propelled by a 30% increase in subscription revenue. The international business expanded by 34% and contributed 33% to the total revenue. The total revenue came out to be $147.59 million. OneStream also saw a remarkable 281% increase in its free cash flow compared to the previous year.
The company introduced new AI innovations, including Sensible AI Studio and Sensible AI Agents, which have been well-received by customers. However, license revenue declined by $900K year-over-year, which the company attributed to the successful conversion of customers to SaaS.
OneStream Inc. (NASDAQ:OS) delivers a unified, AI-enabled, and extensible software platform in the US and internationally.
12. Waystar Holding Corp. (NASDAQ:WAY)
Number of Hedge Fund Holders: 41
Average Upside Potential as of August 15: 39.74%
Waystar Holding Corp. (NASDAQ:WAY) is one of the best IPO stocks to buy according to Wall Street analysts. On July 24, Waystar entered into a definitive agreement to acquire Iodine Software for an enterprise value of $1.25 billion. The deal is expected to be funded with an even split of cash and stock. Waystar shareholders will own ~92% of the new combined company, while Iodine equity holders will own about 8%.
Advent, which is the largest shareholder of Iodine, will receive Waystar shares and has agreed to an 18-month lock-up period post-closing. The acquisition is anticipated to close by the end of 2025, pending regulatory approvals. The acquisition aims to enhance Waystar’s cloud-based platform by integrating Iodine’s AI-powered clinical intelligence software.
The combined entity is projected to serve 17 of the 20 US News Best Hospitals and increase Waystar’s total addressable market by over 15%. The integration will use Iodine’s AI engine, called IodineIQ, which trains on patient encounters and clinical data to automate tasks. The companies anticipate more than $15 million in cost synergies within the first two years after the closing.
Waystar Holding Corp. (NASDAQ:WAY) is a company that develops a cloud-based software solution for healthcare payments.
11. Birkenstock Holding (NYSE:BIRK)
Number of Hedge Fund Holders: 13
Average Upside Potential as of August 15: 41.99%
Birkenstock Holding (NYSE:BIRK) is one of the best IPO stocks to buy according to Wall Street analysts. On August 5, UBS analyst Jay Sole raised the firm’s price target on Birkenstock to $77 from $76, while keeping a Buy rating on the shares. This sentiment came before the company announced its FQ3 2025 earnings report.
Birkenstock Holding achieved a 16% revenue growth in constant currency in FQ3, while reported revenue growth was 12%. This double-digit growth was seen across all segments and channels, with the Americas, EMEA, and APAC regions growing by 16%, 13%, and 24% respectively, in constant currency. The company’s B2B channel was a key driver, outpacing D2C with an 18% constant currency revenue growth. The total revenue for the quarter was $739.62 million.
The company successfully implemented price increases without any negative market response. Birkenstock is also expanding its retail presence, having added 13 new stores and aiming to have around 100 stores by the end of the fiscal year 2025.
Birkenstock Holding (NYSE:BIRK) engages in the manufacture and sale of footwear products. It also offers sandals, shoes, closed-toe silhouettes, skincare products, and accessories.
10. Klaviyo Inc. (NYSE:KVYO)
Number of Hedge Fund Holders: 36
Average Upside Potential as of August 15: 42.90%
Klaviyo Inc. (NYSE:KVYO) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 15, Klaviyo announced the public beta of its new suite of AI-powered tools called Klaviyo Service. The core of this new suite is a Conversational AI Agent, designed to offer personalized, 24/7 shopping assistance and support to online customers.
The AI agent is part of the Customer Hub and is trained on a brand’s product catalog, FAQs, and policies. It can instantly answer questions, recommend products, and guide shoppers from discovery to purchase. The new offering is built on the Klaviyo Data Platform/KDP, which processes over 2 billion daily interactions across more than 7 billion profiles.
The launch follows key findings from Klaviyo’s 2025 Online Shopping Report, which surveyed 2,000 consumers across the US, UK, Australia, and New Zealand. The report highlights a growing consumer preference for AI assistance. Specifically, 62% of respondents would prefer an AI to remember their preferences rather than re-explaining them to a salesperson, and 53% would rather chat with an AI agent for help than email a customer service representative.
Klaviyo Inc. (NYSE:KVYO) is a technology company that provides a SaaS platform in the US, the Americas, the Asia-Pacific, Europe, the Middle East, and Africa.
9. Flowco Holdings Inc. (NYSE:FLOC)
Number of Hedge Fund Holders: 21
Average Upside Potential as of August 15: 74.35%
Flowco Holdings Inc. (NYSE:FLOC) is one of the best IPO stocks to buy according to Wall Street analysts. On August 5, Flowco Holdings announced the completion of its acquisition of high-pressure gas lift/HPGL and vapor recovery unit/VRU systems from Archrock.
The deal, valued at ~$71 million in cash, included 155 HPGL and VRU systems and other related assets. The strategic acquisition is Flowco’s first M&A transaction and is expected to be accretive to key financial metrics.
The acquisition strengthens Flowco’s leadership in HPGL and vapor recovery technologies and enhances its presence in the Permian Basin. The company’s fleet is now expanded with electric motor drive systems, which better position it to serve operators focused on electrification and emissions reduction.
Flowco Holdings Inc. (NYSE:FLOC) provides production optimization, artificial lift, and methane abatement solutions for the oil & natural gas industry in the US. It has 2 segments: Production Solutions and Natural Gas Technologies.
8. Infinity Natural Resources Inc. (NYSE:INR)
Number of Hedge Fund Holders: 21
Average Upside Potential as of August 15: 86.88%
Infinity Natural Resources Inc. (NYSE:INR) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 22, Raymond James analyst John Freeman raised the firm’s price target on Infinity Natural Resources to $29 from $28, while maintaining a Strong Buy rating on the shares. While macro uncertainty remains, the oil prices are recovering, and so Raymond James sees minimal activity changes from management teams.
Following this sentiment, Infinity Natural Resources held its Q2 2025 earnings call in August and reported a 25% production increase, with average daily production reaching 33.1 MBOE per day, up from 26.5 MBOE per day in Q1. This was a 28% year-over-year rise in net production due to the successful development of Marcellus Shale wells.
Infinity improved its efficiency, with operating costs per barrel of oil equivalent declining to $7.93 from $8.14 in Q2 2024. It also successfully accelerated a Pennsylvania natural gas project. The company’s 2025 production outlook is between 32 and 35 MBOE per day, with capital expenditures for drilling and completion projected at $240 to $280 million, and midstream activities between $9 and $12 million.
Infinity Natural Resources Inc. (NYSE:INR) acquires, explores, and develops properties to produce oil, natural gas, and natural gas liquids from underground reservoirs in the US.
7. Metsera Inc. (NASDAQ:MTSR)
Number of Hedge Fund Holders: 17
Average Upside Potential as of August 15: 103.28%
Metsera Inc. (NASDAQ:MTSR) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 20, BofA raised the firm’s price target on Metsera to $45 from $38, while keeping a Buy rating on the shares after the company announced the first round of clinical data on its amylin agonist, called MET-233i.
Metsera then later released its Q2 2025 financial results in the same month. The company reported cash reserves of $530.9 million as of June 30, compared to $352.4 million as of December 31, 2024, and is expected to provide an operational runway through 2027. In Q2, Metsera reported positive Phase 1 data for MET-233i, a once-monthly amylin analog.
The company also has MET-097i, a monthly GLP-1 receptor agonist, with Phase 3 trials expected to begin in late 2025. The release of topline data from the VESPER-1 and interim data from VESPER-3 trials is anticipated in late 2025 to inform the dosing regimen for the Phase 3 trials. Additionally, Metsera’s oral peptide platform, including MET-097o and MET-224o, is expected to present four-week data later in the year.
Metsera Inc. (NASDAQ:MTSR) is a clinical-stage biotechnology company that develops injectable and oral nutrient-stimulated hormone analog peptides to treat obesity, overweight, and related diseases.
6. CG Oncology Inc. (NASDAQ:CGON)
Number of Hedge Fund Holders: 24
Average Upside Potential as of August 15: 133.10%
CG Oncology Inc. (NASDAQ:CGON) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 16, RBC Capital lowered the firm’s price target on CG Oncology to $53 from $68, while maintaining an Outperform rating on the shares. RBC sees a favorable setup into H2 2025, with topline readouts in HR NMIBC/Non-Muscle Invasive Bladder Cancer and BCG-naive patients likely to clear the bar.
Later in August, the company also announced its Q2 2025 report. CG Oncology’s lead investigational drug, cretostimogene grenadenorepvec, an oncolytic immunotherapy, showed promising results in clinical trials. The BOND-003 Cohort C trial demonstrated a 75.5% complete response rate in patients with NMIBC. The median duration of response was 28 months, and 97.3% of patients were free from disease progression to muscle-invasive disease at 24 months.
CG Oncology expects to complete Phase 3 enrollment for its PIVOT-006 trial in Q3 2025. It also plans to initiate a Biologics License Application/BLA submission for cretostimogene in Q4 2025. The company recently initiated the CORE-008 Cohort CX trial, which evaluates the combination of cretostimogene and gemcitabine in high-risk NMIBC patients.
CG Oncology Inc. (NASDAQ:CGON) is a late-stage clinical biopharmaceutical company that develops and commercializes backbone bladder-sparing therapeutics for patients with bladder cancer.
5. MBX Biosciences Inc. (NASDAQ:MBX)
Number of Hedge Fund Holders: 20
Average Upside Potential as of August 15: 162.07%
MBX Biosciences Inc. (NASDAQ:MBX) is one of the best IPO stocks to buy according to Wall Street analysts. On June 16, MBX Biosciences announced the submission of an Investigational New Drug/IND application to the US FDA for MBX 4291. This drug is a long-acting GLP-1/GIP receptor co-agonist prodrug being developed for the treatment of obesity.
The company’s President and CEO, Kent Hawryluk, stated that MBX 4291 is designed to be a potential once-monthly injectable, which could offer less frequent dosing and improved gastrointestinal tolerability, potentially leading to better patient adherence and increased weight loss. MBX 4291 was created using the company’s proprietary Precision Endocrine Peptide/PEP platform.
In preclinical studies, the active component of MBX 4291 demonstrated a similar activity profile and body weight loss as tirzepatide, a weekly GLP-1/GIP co-agonist that is already approved. Furthermore, these preclinical studies showed an extended duration of action for MBX 4291’s active component compared to tirzepatide, supporting the potential for once-monthly administration.
MBX Biosciences Inc. (NASDAQ:MBX) is a clinical-stage biopharmaceutical company that discovers and develops precision peptide therapies for the treatment of endocrine and metabolic disorders.
4. Upstream Bio Inc. (NASDAQ:UPB)
Number of Hedge Fund Holders: 21
Average Upside Potential as of August 15: 192.55%
Upstream Bio Inc. (NASDAQ:UPB) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 8, Upstream Bio announced that the first patient had been dosed in a Phase 2 clinical trial of verekitug for the treatment of Chronic Obstructive Pulmonary Disease/COPD. The trial, named VENTURE, is a randomized, double-blind, and placebo-controlled study that will evaluate the efficacy and safety of verekitug in ~670 adults with moderate-to-severe COPD.
The participants will receive either 100 mg of verekitug every 12 weeks, 400 mg every 24 weeks, or a placebo, throughout 60 to 108 weeks. The primary endpoint of the study is the annualized rate of moderate or severe COPD exacerbations. Verekitug is a novel monoclonal antibody that targets the TSLP/Thymic Stromal Lymphopoietin receptor, which is a key driver of the inflammatory response in several respiratory diseases.
According to Upstream Bio, it is the only known biologic in development that directly targets this receptor. The company believes that by blocking TSLP, verekitug has the potential to offer differentiated efficacy and less frequent dosing compared to currently approved therapies for COPD. This new trial expands the global development program for verekitug, which is also being evaluated in separate Phase 2 trials for chronic rhinosinusitis with nasal polyps/CRSwNP and severe asthma.
Upstream Bio Inc. (NASDAQ:UPB) is a clinical-stage biotechnology company that develops treatments for inflammatory diseases, focusing on severe respiratory disorders.
3. Neumora Therapeutics Inc. (NASDAQ:NMRA)
Number of Hedge Fund Holders: 18
Average Upside Potential as of August 15: 198.51%
Neumora Therapeutics Inc. (NASDAQ:NMRA) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 9, Neumora Therapeutics initiated a Phase 1 single-ascending dose/multiple-ascending dose (SAD/MAD) study for its drug candidate, called NMRA-861.
The study is being conducted in healthy adult participants and adults with stable schizophrenia. In preclinical studies, NMRA-861 demonstrated a strong pharmacological profile and was found to be safe and well-tolerated.
Neumora expects to report data from the Phase 1 SAD/MAD study in the first quarter of 2026. This data will include assessments of the drug’s safety, tolerability, and human pharmacokinetic data, which will confirm its potential for once-daily dosing and central nervous system penetration.
Neumora Therapeutics Inc. (NASDAQ:NMRA) is a clinical-stage biopharmaceutical company that develops therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases in the US.
2. Alto Neuroscience Inc. (NYSE:ANRO)
Number of Hedge Fund Holders: 19
Average Upside Potential as of August 15: 223.62%
Alto Neuroscience Inc. (NYSE:ANRO) is one of the best IPO stocks to buy according to Wall Street analysts. On June 26, Alto Neuroscience announced positive pharmacodynamic results from an exploratory Phase 2 proof-of-concept/POC trial of its drug candidate, ALTO-203. The trial enrolled 69 patients with major depressive disorder/MDD who also had elevated anhedonia, a condition characterized by a reduced ability to feel pleasure.
While the trial was not powered to show statistical significance on traditional depression scales like MADRS, it successfully identified a robust patient selection biomarker. This biomarker, the EEG high-theta/beta ratio, is a well-validated measure of abnormal cortical arousal and poor attentional control. The findings from this trial replicate results from a previous Phase 1 study in healthy volunteers, confirming that ALTO-203’s pro-cognitive and wake-promoting effects are linked to a reduction in this specific EEG ratio.
The drug is an oral histamine H3 inverse agonist and was well-tolerated in the trial, with insomnia being the most frequent adverse event. Alto Neuroscience plans to report additional results from this exploratory study at a future medical meeting and will determine the next development steps for ALTO-203 after a complete analysis of the data. The company’s goal is to use its Precision Psychiatry Platform to use objective biomarkers for targeted neuropsychiatric drug development.
Alto Neuroscience Inc. (NYSE:ANRO) is a clinical-stage biopharmaceutical company in the US.
1. Lexeo Therapeutics Inc. (NASDAQ:LXEO)
Number of Hedge Fund Holders: 20
Average Upside Potential as of August 15: 343.46%
Lexeo Therapeutics Inc. (NASDAQ:LXEO) is one of the best IPO stocks to buy according to Wall Street analysts. Earlier on July 7, the US FDA granted Breakthrough Therapy designation to Lexeo Therapeutics for its investigational drug, LX2006, which is a gene therapy for Friedreich ataxia/FA.
The designation was based on interim clinical data from two ongoing trials—the Lexeo-sponsored SUNRISE-FA Phase 1/2 trial and the Weill Cornell Medicine investigator-initiated Phase 1A trial. To date, 17 participants have been treated across both studies. The interim data showed that LX2006 was associated with clinically meaningful improvements in cardiac biomarkers and cardiac and neurologic functional measures.
In all participants with available cardiac biopsies, an increase in frataxin expression was observed three months after treatment. This is particularly significant as cardiomyopathy is the leading cause of death in FA, with cardiac dysfunction accounting for the cause of death in approximately two-thirds of patients. The company expects to begin a registrational study by early 2026 and is currently enrolling patients in a natural history study, CLARITY-FA, to serve as an external control arm.
Lexeo Therapeutics Inc. (NASDAQ:LXEO) is a clinical-stage genetic medicine company that focuses on hereditary and acquired diseases with high unmet need in the US.
While we acknowledge the potential of LXEO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LXEO and that has 100x upside potential, check out our report about this cheapest AI stock.
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