2 New IPO Stocks Hit the Market – Morgan Stanley Picks the Superior One to Buy

IPOs tend to draw close attention because they offer a useful snapshot of overall market confidence. When companies are willing to go public, it signals that conditions are supportive enough to raise capital in the equity markets – and that investors are receptive to new listings.Claim 70% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential In the years following the pandemic, that window was largely shut. Activity remained muted as volatility, inflation, and rising interest rates weighed on sentiment. That began to change last year, as the U.S. IPO market showed clear signs of revival. By mid-December, 342 companies had gone public in the U.S., representing a 57% increase year over year. Just as importantly, those offerings raised meaningfully more capital, with aggregate proceeds exceeding $75 billion – roughly 80% higher than the prior year. Cooling inflation and the Federal Reserve’s shift toward interest-rate easing have helped improve equity market conditions, making stocks comparatively more attractive. At the same time, the U.S. market has continued to outperform many international peers, with the prospect of higher valuations and deeper liquidity helping to draw additional capital. With that backdrop in mind, we can take a look at two recent IPOs that have caught Morgan Stanley’s attention. While both companies are on the firm’s radar, its views on them differ in important ways. We also check the TipRanks database to see how the broader analyst community stacks up on each name. Let’s dive in. Medline (MDLN) The first new IPO stock on our list is not a new company at all. Illinois-based Medline, founded in 1966, is a major player in the healthcare industry, and is well-known as a provider of medical-surgical products, as well as supply chain solutions for all ‘points of care’ in the field. Medline has a broad portfolio that includes such items as gloves and medical apparel; medical and diagnostic equipment; lab supplies; and nutrition, skin care, and pharmacy supplies – and that’s just a short sampling of the list. In all, Medline offers more than 335,000 products, under a wide range of brand names. On the logistical side, the company employs over 43,000 people, operates more than 29 million square feet of warehousing, and can provide next-day shipping for 95% of its US customer base. Medline’s stock hit the market on Wednesday, December 17, last year, and the IPO closed the next day. The event was successful – and in fact, was the largest IPO of 2025. Medline sold a total of 216,034,482 shares at $29 each, and raised gross proceeds of $6.26 billion. The underwriters also exercised their option, and purchased an additional 32,405,172 shares of MDLN. The company has a market cap of ~$34 billion. Patrick Wood covers this stock for Morgan Stanley. He sees the company as a solid option for investors, based in part on its position as the largest medical supply distributor in the US market. He writes, “Given the unique business model as well as the large size and scale of the business, there are no perfect comps for Medline. However, we think positioning in-line with diversified and integrated medtech/tools names is warranted given Medline’s vertical integration and large scale presence within the healthcare eco-system (similar to TMO’s integration with US HC), despite near-term tariff pressures. Additionally… we think that the higher revenue growth-rates and more defensive underlying end markets should support Medline’s positioning longer-term… With some of the most sustainable and compounding growth (c. +8% with upside risk) in our sector, and a lower than average risk profile (no one-off clinical data, limited macro risk etc), we think the stock looks attractive…” Wood follows up with an Overweight (Buy) rating here, and a $48 price target that implies a one-year upside potential of 10%. (To watch Wood’s track record, click here) Overall, MDLN stock holds a Strong Buy consensus rating after one month of trading, based on 26 reviews that include 22 Buys and 4 Holds. The shares are priced at $43.41 and the $47.24 average target price implies a 9% gain in the next 12 months. (See MDLN stock forecast)