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.
Bullish analyst framing on a newly public IPO name (XE) could support near-term sentiment and flows, but it’s not a new fundamental datapoint.
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.
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.
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 relevance
Useful for IPO-basket sentiment and early trading bias, especially for XE where the article includes a specific JPMorgan price target and consensus breakdown.
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.
Alternative perspectives
Analyst ‘Strong Buy’ on early IPOs can overstate certainty; SMR and drilling-equipment cycles remain execution- and capex-dependent.
For XE, execution risk (licensing/timing/costs) and policy sensitivity can dominate; for HMH, customer capex and aftermarket margins can swing with commodity cycles.
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.
