UBS Picks Superior IPO Stock to Buy Amid Strong Market Activity

IPO activity in 2025 is up, with 109 new public offerings in the first half, compared to 81 in the first half of last year. Tech companies lead the pack, making up one-third of total new offerings and half of total proceeds. UBS analysts have reviewed two new IPO stocks and recommend NIQ Global Intelligence over its competitor. NIQ is a consumer intelligence company that delivers comprehensive insights on consumer buying behavior and offers advanced analytics and platforms to process 3.1 trillion data records weekly. The company has 23,000 client companies, including Fortune 100 companies, relying on its services.

IPO activity in 2025 has shown a significant increase, with 109 new public offerings in the first half of the year, compared to 81 in the same period last year. This surge, driven largely by tech companies, highlights the robust growth and innovation in the sector. Among the new offerings, UBS analysts have reviewed two IPO stocks and recommended NIQ Global Intelligence (NIQ) over its competitor.

NIQ is a Chicago-based consumer intelligence company that provides comprehensive insights into consumer buying behavior. The company leverages advanced analytics and state-of-the-art platforms to deliver a 'Full View' of consumer insights, covering more than 90 countries and accounting for over 85% of the world's total population. NIQ processes 3.1 trillion data records weekly, making it a valuable resource for businesses seeking to understand their customers and markets better.

With a client base of 23,000 companies, including most of the Fortune 100, NIQ's services are in high demand. The company's product suite includes tools that translate data into actionable insights, helping businesses track market shifts, anticipate consumer behavior, and refine branding strategies. NIQ's IPO on July 23 raised $1.05 billion by selling 50 million shares, pricing at $21 per share. The company's shares have since slipped to $16.94, giving it a market cap of $5.15 billion.

UBS analyst Kevin McVeigh highlighted NIQ's strong product offering as a key advantage. He noted that NIQ's Intelligence solution, which accounts for about 80% of its revenue, is crucial for clients' understanding of consumer buying patterns. The Activation solution, making up around 20% of the revenue, provides a comprehensive view of why consumers are buying a product. McVeigh also pointed out the company's high recurring revenue, with a 97% gross retention rate and a 104% net retention rate for Intelligence subscriptions in 2024.

The IPO marks a significant milestone for NIQ, which has been expanding its capabilities through strategic acquisitions. Most recently, NIQ announced the purchase of Mtrix, a Brazilian software company specializing in visibility for indirect distribution supply chains. This acquisition signals NIQ's intent to diversify its customer base and geographic exposure, particularly in Latin America.

While NIQ's post-IPO financials showed a 5.6% year-over-year revenue increase in 2Q25, the bottom line showed a GAAP EPS of -$0.14. Despite this, the company's strong product offering and high recurring revenue make it an attractive investment opportunity.

References:
[1] https://www.ainvest.com/news/niq-global-intelligence-high-growth-turnaround-story-data-driven-consumer-insights-sector-2508/
[2] https://www.tipranks.com/news/2-new-ipo-stocks-in-town-ubs-picks-the-superior-one-to-buy