JPMorgan Highlights Two IPO Stocks with Strong Rebound Potential

Geopolitical tensions in the Middle East have intensified in recent days, reigniting concerns about oil prices, inflation, and the global economic outlook. However, the S&P 500 remains within 2% of its all-time high, indicating investors anticipate the broader impact to stay manageable.

JPMorgan Identifies Two IPO Stocks Amid Market Volatility

JPMorgan’s Head of Global and European Equity Strategy, Mislav Matejka, advises investors to leverage market weakness tied to geopolitical events for strategic equity buys while focusing on long-term fundamentals. He notes that if the conflict’s impact is priced in, oil prices, inflation, bond yields, and the USD could reverse their recent upward trends.

JPMorgan analysts have identified two IPO stocks that faced early challenges but show rebound potential. Both companies operate in high-growth sectors and are supported by favorable market conditions. Below, we examine each in detail.

ERock (EROC)

ERock is a provider of utility-grade online power solutions for industries like data centers, healthcare, and manufacturing. Unlike traditional grid-based power producers, ERock offers scalable energy infrastructure tailored to clients needing grid-independent energy. Since 2006, the company has specialized in natural gas generators and modular power systems designed for rapid deployment and reliability during outages. These systems emphasize low emissions, scalability, and critical operational support as grid reliability faces pressure from rising demand.

ERock’s IPO on June 10 raised $600 million by selling 27.9 million shares at $21.50 each. However, the stock has since dropped 42% due to investor concerns over net losses, a $1.3 billion backlog conversion timeline, and customer concentration in Texas. Despite these issues, JPMorgan analyst Mark Strouse is bullish, rating EROC as Overweight (Buy) with a $24 price target—122% upside in 12 months. Strouse highlights ERock’s modular, natural gas-powered solutions as well-suited for bridge power needs, particularly for data centers, and its ability to provide grid services beyond backup generation. Wall Street aligns, with a Strong Buy consensus and an average price target of $22.63 (109% upside).

Wise (WSE)

Wise is a global fintech leader in cross-border money transfers and multi-currency accounts, serving 19 million customers. In fiscal 2026, it processed over $243 billion in cross-border payments, a 31% year-over-year increase, with half its revenue from non-transfer products. Wise maintains industry-leading fees (0.52% per transaction) and plans to expand its ecosystem while scaling profits.

Wise began trading on Nasdaq on May 11 after relocating its primary listing to the U.S. to attract American investors. However, its stock has fallen 18% since then, partly due to a Belgian investigation into potential money laundering linked to €500 million in suspicious transactions. While no charges have been filed, the probe follows prior regulatory issues in the UK and U.S. Despite this, Wise’s business remains strong, reporting $2.5 billion in net revenue (+19% YoY) and a 26% before-tax margin in 2026.

JPMorgan analyst Craig McDowell remains optimistic, rating Wise as Overweight (Buy) with a $17.50 target, signaling 37% upside. The stock trades at $12.62, with analysts averaging a $16.04 target (27% upside). McDowell notes Wise’s sustainable cost advantages and its evolution into a financial infrastructure provider, which could drive long-term growth. The consensus is supportive, with 9 Buy ratings and 1 Sell.

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