UBS Picks Best IPO Stock to Buy Amidst 2025's New Listings

UBS analysts recommend buying NIQ Global Intelligence over another new IPO stock, citing its broad reach and actionable insights in the consumer intelligence field. The company has a comprehensive data resource covering 90 countries, 85% of the world's population, and $7.2 trillion in consumer spending. It processes 3.1 trillion data records weekly and has 23,000 client companies, including most Fortune 100 companies.

UBS analysts have initiated coverage on NIQ Global Intelligence Plc (NYSE:NIQ) with a "Buy" rating and a price target of $24.00, implying approximately 35% upside potential from its current price of $17.40. The company is valued at $5.3 billion and trades above its InvestingPro Fair Value. NIQ Global Intelligence provides brands, retailers, and other clients with consumer shopping behavior data to facilitate economic outcomes by combining proprietary data, software applications, and analytics.

The company serves approximately 23,000 clients across more than 90 countries, generating annual revenue of $4 billion with a healthy gross margin of 56%. UBS believes NIQ enjoys high barriers to entry due to its mission-critical data and sees low risk of disintermediation given the company’s integration in client workflows and benefits from artificial intelligence. The firm highlights NIQ's broad reach and actionable insights in the consumer intelligence field, covering 90 countries, 85% of the world's population, and $7.2 trillion in consumer spending. NIQ processes 3.1 trillion data records weekly and has 23,000 client companies, including most Fortune 100 companies [1].

UBS's recommendation is based on NIQ's strong financial performance and growth potential. The company has executed a strategic transformation since its carve-out from Nielsen Holdings (NYSE:NLSN) in 2021, with significant investments in technology upgrades and acquisitions. These moves have resulted in a 5.6% year-over-year revenue increase in Q2 2025 and an adjusted EBITDA margin expansion of 180 basis points to 20.6% [2].

NIQ's AI strategy, epitomized by Ask Arthur, a generative AI tool launched in May 2024, has significantly enhanced client satisfaction and loyalty. The tool has driven a 25-point Net Promoter Score (NPS) jump from 13 in 2019 to 38 in 2024, underscoring its impact on client retention and upselling momentum [2].

UBS sees NIQ as well-positioned due to its broad data offerings and exclusivity. The company's AI-driven differentiation creates a durable revenue base, with a 105% Net Dollar Retention rate for Intelligence Subscriptions. Despite high debt levels and competitive pressures, NIQ's AI moats and improving free cash flow visibility make it an attractive investment opportunity for investors with a 3-5 year horizon [2].

In conclusion, UBS's "Buy" rating on NIQ Global Intelligence is backed by the company's strong financial performance, AI-driven differentiation, and broad reach in the consumer intelligence field. Investors should monitor NIQ's debt reduction progress and free cash flow trajectory for confirmation of the bull case.

References:
[1] https://finance.yahoo.com/news/outmeasuring-competition-analysts-start-niq-135949524.html
[2] https://www.ainvest.com/news/niq-global-intelligence-high-growth-turnaround-story-data-driven-consumer-insights-sector-2508/