12 Most Promising New Technology Stocks According to Analysts

Published on February 25, 2023 at 3:36 pm by Fahad Saleem in Hedge Funds, News

In this article, we will take a look at the 12 most promising new technology stocks according to analysts. To see more such companies, go directly to 5 Most Promising New Technology Stocks According to Analysts.

Our focus in this article would be new tech stocks, by which we mean those tech companies that went public over the past couple of years. The 2022 market crash hammered the IPO markets as companies struggled to justify their valuations and secure cash.

Tech companies also struggled to sell themselves to other, big companies. According to a report by Bloomberg, which cited data from PitchBook, in the first three quarters of 2022, completed venture-backed acquisitions had a net worth of about $81.7 billion, showing a huge drop from $137.8 billion in the comparable period of the previous year.

However, amid the rise of tech stocks at the start of the year, analysts were hopeful that the IPO markets could see a comeback this year. A Bloomberg report published on February 7 said that 7 IPOs were expected to raise about $900 million and begin trading by February 7. However, the report warned that a few major IPOs don’t reflect a broader bullish sentiment and does not necessarily mean that we are about to witness another IPO spree.

Another Bloomberg report published on February 1 pointed to the optimism brewing up in the IPO space. The report said that major banks in the US are pushing their clients for IPOs amid encouraging signs. The report said the Cboe Volatility Index touched its one-year low in January.

The report cited Steve Maletzky, head of equity capital markets at William Blair & Co, who said the following:

“We’re advising our clients who are already in the IPO pipeline and fit the criteria that investors are focused on in today’s market: companies that have proven commercial scale and strong top-line growth in addition to proven profitability.”

However, all of this was before key data that showed that the Federal Reserve still has a long way to go in its battle against inflation.

Despite all of this uncertainty, there are a few new tech stocks that have promising growth prospects, according to market analysts.

Most Promising New Technology Stocks According to Analysts

Photo by Ruben Sukatendel on Unsplash

Our Methodology

For this article, we used the Finviz stock screener to identify technology stocks that went public over the past two years. From the long list of these companies we chose the ones whose average price target estimated by analysts for one year is at least 50% above their today’s stock price. From the resultant dataset we picked 12 notable tech stocks with highest upside potential based on average analyst price targets. With each stock we have written its one-year price target estimate, taken from Yahoo Finance.

Most Promising New Technology Stocks According to Analysts

12. IDEX Biometrics ASA (NASDAQ:IDBA)

Number of Hedge Fund Holders: 0

Estimated One-Year Price Target: $75.00

Identity authentication services provider IDEX Biometrics ASA (NASDAQ:IDBA) is one of the most promising new technology stocks according to analysts.

In November, IDEX Biometrics ASA (NASDAQ:IDBA) received a volume production order from its partner IDEMIA, representing the largest order to date for IDEX TrustedBio sensors.

In November, IDEX Biometrics ASA (NASDAQ:IDBA) posted its third quarter results. GAAP EPS in the quarter was -$0.01, which beat estimates by $0.55. Revenue in the period jumped about 27.4% on a YoY basis to come in at $0.93 million, missing estimates by $0.06 million.

11. Wallbox N.V. (NYSE:WBX)

Number of Hedge Fund Holders: 4

Estimated One-Year Price Target: $12.68

Wallbox N.V. (NYSE:WBX) is a Spain-based company that makes EV charging technologies. Wallbox N.V. (NYSE:WBX) has gained about 70% year to date.

In January, Wallbox N.V. (NYSE:WBX) announced the cost-cutting measures it’s taking to align itself with 2023 guidance. Wallbox N.V. (NYSE:WBX) said its measures will affect operating and personnel expenses and will impact approximately 15% of the workforce. The cost savings measures will result in annualized cost savings for 2023 of about €50 million.

During the fourth quarter, Wallbox N.V. (NYSE:WBX) added about €70 million in cash and availability under working capital lines.

As of the end of the third quarter of 2022, 4 hedge funds tracked by Insider Monkey had stakes in Wallbox N.V. (NYSE:WBX). The biggest hedge fund stakeholder of Wallbox N.V. (NYSE:WBX) was Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners which owns a stake worth over $15 million in the company. Another notable hedge fund stakeholder of Wallbox N.V. (NYSE:WBX) was Gavin Saitowitz and Cisco J. Del Valle’s Springbok Capital.

10. Gorilla Technology Group Inc. (NASDAQ:GRRR)

Number of Hedge Fund Holders: 4

Estimated One-Year Price Target: $13.00

Gorilla Technology Group Inc. (NASDAQ:GRRR) provides services related to video intelligence, Internet of Things (IoT) security, and edge content management hardware, software.

In November, Gorilla Technology Group Inc. (NASDAQ:GRRR) announced that it would buy UK-based SeeQuestor, a global provider of video analytics technology, for an undisclosed amount.

A total of 4 hedge funds tracked by Insider Monkey had stakes in Gorilla Technology Group Inc. (NASDAQ:GRRR) as of the end of the third quarter of 2022.

9. Kaltura, Inc. (NASDAQ:KLTR)

Number of Hedge Fund Holders: 7

Estimated One-Year Price Target: $3.39

New York-based software company Kaltura, Inc. (NASDAQ:KLTR) ranks 9th in our list of the most promising new technology stocks according to analysts. In November, Kaltura, Inc. (NASDAQ:KLTR) posted its third quarter results, which showed that Kaltura’s adjusted EPS in the period was -$0.09, in-line with estimates. Revenue in the quarter fell 4.4% on a YoY basis to total $41.1 million, missing estimates by $0.25 million.

As of the end of the third quarter of 2022, 7 hedge funds had stakes in Kaltura, Inc. (NASDAQ:KLTR). The total worth of these stakes was $1.2 million.

8. Pagaya Technologies Ltd. (NASDAQ:PGY)

Number of Hedge Fund Holders: 11

Estimated One-Year Price Target: $2.09

Financial technology company Pagaya Technologies Ltd. (NASDAQ:PGY) is based in Israel. Pagaya Technologies Ltd. (NASDAQ:PGY) ranks 8th in our list of most promising new technology stocks according to analysts. Recently, Pagaya Technologies Ltd. (NASDAQ:PGY) came into the limelight after investment firm Canaccord analyst Joseph Vafi upgraded the stock to Buy from Hold.

The analyst said that Pagaya Technologies Ltd. (NASDAQ:PGY) could gain if the company sticks to its “current prudent path to growth during this time of uncertainty.”

Pagaya Technologies Ltd. (NASDAQ:PGY) recently posted strong Q4 results and gave solid guidance. In the last quarter of 2022, Pagaya Technologies Ltd. (NASDAQ:PGY)’s adjusted EPS came in at -$0.01, beating estimates by $0.02. Revenue in the quarter jumped about 25% on a YoY basis to reach $192.9 million. For 2023, Pagaya Technologies Ltd. (NASDAQ:PGY) expects its revenue to come in the range of $775 million and $825 million, much better than the consensus estimate of $767.90 million.

7. Rumble Inc. (NASDAQ:RUM)

Number of Hedge Fund Holders: 12

Estimated One-Year Price Target: $15.00

Florida-based Rumble Inc. (NASDAQ:RUM) operates video sharing platforms. In November, Rumble Inc. (NASDAQ:RUM) posted strong Q3 results. Revenue in the period jumped a whopping 430% on a YoY basis to reach $10.98 million, beating estimates by $4.84 million. GAAP EPS in the period came in at -$0.01, beating estimates by $0.01.

As of the end of the third quarter of 2022, 12 hedge funds reported owning shares of Rumble Inc. (NASDAQ:RUM). The total value of these stakes was $38 million.

In January, Rumble Inc. (NASDAQ:RUM) announced to expand its partnership with Power Slap, the world’s premier slap fighting organization. Rumble Inc. (NASDAQ:RUM) will become Power Slap’s Official Digital Platform for the start of its flagship television program Power Slap: Road to the Title.

6. Expensify, Inc. (NASDAQ:EXFY)

Number of Hedge Fund Holders: 13

Estimated One-Year Price Target: $15.22

Cloud-based expense management software company Expensify, Inc. (NASDAQ:EXFY) shares look promising based on their one-year price target set by analysts.

In November, Expensify, Inc. (NASDAQ:EXFY) announced that it had purchased 599,080 shares of its common stock on the open market. This brought the total amount spent by Expensify, Inc. (NASDAQ:EXFY) to reduce its share count to $10 million year to date through November 29.

During the same month Expensify, Inc. (NASDAQ:EXFY) posted its third quarter earnings report that disappointed investors. Its GAAP EPS in the period came in at -$0.10, missing estimates by $0.03. Revenue in the period gained about 13.6% YoY to reach $42.5 million, missing estimates by $3.44 million. Non-GAAP net income in the period came in at $3.44 million.

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