Goldman Sachs Selects Top Pick Among Two New IPO Stocks
Initial public offerings (IPOs) have gained significant attention in the stock market as they introduce new stocks and capital to diverse sectors. The third quarter of 2025 showcased remarkable IPO activity, marking the highest number of IPOs since 2021. This quarter featured 60 IPOs that collectively raised $14.6 billion, a substantial increase compared to $2.4 billion during the third quarter of 2024.
Goldman Sachs Highlights Top IPO Picks
Goldman Sachs analysts have evaluated two notable IPO stocks, identifying Klarna Group (KLAR) as their top recommendation.
Klarna Group Overview
Klarna Group is a Sweden-based financial technology company specializing in online payment solutions. With a focus on e-commerce, Klarna provides ‘buy now, pay later’ services and manages payments for numerous retailers. The company serves approximately 111 million customers and has partnered with around 790,000 businesses across 26 countries. Klarna processes a substantial $112 billion in gross merchandise volume.
- IPO Date: September 10, 2025
- Initial Share Price: $40
- Total Shares Offered: 34,311,274
- Funds Raised: $1.37 billion
- Market Capitalization: ~$15 billion
Will Nance, an analyst at Goldman Sachs, believes Klarna is a market leader in the buy-now-pay-later sector. He anticipates consistent growth due to its strong position in Europe and potential geographical expansion. Nance rates Klarna as a ‘Buy’ with a price target of $55, representing a potential upside of approximately 42% over the next year.
Gemini Space Station Insights
In contrast, Gemini Space Station (GEMI) focuses on cryptocurrency trading and offers an online app and web wallet for users. As a registered crypto exchange, Gemini allows both individuals and institutions to engage with the decentralized finance market. The company provides a credit card linked to users’ crypto accounts, offering attractive rewards in Bitcoin.
- IPO Date: September 12, 2025
- Initial Share Price: $28
- Shares Offered: 15,937,501
- Funds Raised: Over $446 million
- Current Market Capitalization: Just over $3 billion
James Yaro, also from Goldman Sachs, suggests a more cautious outlook for Gemini. His analysis points out several risks, including the company’s uncertain path to profitability and competitive pressures from other financial service providers. He rates Gemini with a ‘Hold’ and sets a price target of $25, which implies a modest upside of about 7%.
Conclusion
Overall, recent evaluations from Goldman Sachs determine that Klarna Group stands out as the superior stock following its IPO. The positive sentiment around Klarna contrasts with the mixed views on Gemini Space Station, emphasizing the potential for investors to find solid opportunities in the burgeoning IPO landscape.
