2 New ‘Strong Buy’ IPO Stocks J.P. Morgan Is Bullish On
The article says IPO activity in the U.S. fell in 1Q26 to 32 IPOs from 63 in 1Q25, while proceeds rose to $11B from $9B. It highlights two JPMorgan “Strong Buy” IPO picks: X-Energy (XE), priced at $23 in an upsized April IPO raising about $1.02B, with JPMorgan’s Jeremy Tonet setting a $38 target; and HMH Holding (HMH), formed in 2021 and IPO’d in early April, initially priced at $20.
How this was made
The 30-second read
Why it matters
The main tradable element is sentiment/positioning around two newly public names (XE, HMH) via JPMorgan’s analyst stance; it does not introduce a new contract, earnings surprise, or regulatory action in the provided text.
Market read
Useful for IPO-basket sentiment and early trading bias, especially for XE where the article includes a specific JPMorgan price target and consensus breakdown.
What to watch
For XE, execution risk (licensing/timing/costs) and policy sensitivity can dominate; for HMH, customer capex and aftermarket margins can swing with commodity cycles.
Background
The article frames a weaker IPO volume in 1Q26 versus 1Q25, while proceeds rose, then highlights two JPMorgan ‘Strong Buy’ IPO picks in energy.
Ticker impact
Article spotlights X-Energy’s IPO details and JPMorgan’s Strong Buy view, citing its 11.5GW backlog and DOE/Amazon backing.
Mild-to-moderate upside bias versus peers/IPO basket; expect volatility typical of early-stage nuclear/SMR stories.
The piece is primarily an analyst/positioning recap (rating + targets) rather than a fresh contract, earnings print, or regulatory decision; however, it references specific backlog and IPO pricing/size that can influence trading.
HMH is one of JPMorgan’s two highlighted IPO picks, with the article describing its merger heritage and aftermarket-heavy drilling services model.
Low directional conviction; potential sympathy bid if IPO sentiment improves, but no new event is disclosed.
The excerpt provides background and IPO setup but does not include a concrete new datapoint (e.g., guidance change, contract award, or updated rating/target) for HMH within the visible text.
Market effects
Supports the ‘energy as an IPO opportunity’ framing, potentially improving sentiment for adjacent energy services and advanced energy tech themes.
Primarily US-listed IPO sentiment; could marginally influence Houston/energy-services investor positioning.
Advanced nuclear/energy infrastructure narratives can affect global capital allocation expectations, but the article is US-focused.
Counterpoint
Analyst ‘Strong Buy’ on early IPOs can overstate certainty; SMR and drilling-equipment cycles remain execution- and capex-dependent.
Key entities
- companyX-Energy
Advanced nuclear/SMR developer; IPO upsized and priced at $23; JPMorgan cites backlog and DOE/Amazon support.
- companyHMH Holding
Hydrocarbon drilling equipment/services company formed via merger; described as aftermarket-heavy with global installed base.
- institutionJ.P. Morgan
Analyst firm providing the ‘Strong Buy’ framing for the two IPO picks.
