The largest IPO trend in 2025 shows no sign of slowing down: Medline (MDLN.US) receives bullish ratings from Wall Street, pushing its market value above $57 billion.

Notice that Medline Inc. (MDLN.US) stock price rose on Monday, closing up 5.43% at $42.72. Wall Street analysts expressed a bullish outlook on the business model and growth prospects of this medical supplier since its $7.2 billion IPO completed last month. Data shows that 27 institutions have started covering the stock, with 22 giving a "buy" or equivalent rating. The average target price set by analysts for the next 12 months is $47.12 per share. Analysts point out that Medline's scale, vertically integrated manufacturing model, and the boost from an aging population are its core strengths. On Monday, Medline's stock price rose by as much as 6.3%, continuing its upward trend since the IPO. The company's IPO was the largest in 2025. After a year of lackluster new stock debuts, Medline's stock price has risen nearly 40% from the IPO price to January 9. The company primarily manufactures and distributes products such as gloves, surgical gowns, and examination beds for hospitals and doctors, with its market value now reaching $57 billion. Analysts from William Blair said that Medline is a leading player in the medical surgical distribution field, covering a Total Addressable Market (TAM) of up to $375 billion, including a $175 billion market in the US. They noted that the company has only penetrated about 15% of the market opportunity so far. William Blair's Brandon Bazquez wrote in a report, "Underpinning all of this is decades of mid-single-digit market growth, which is expected to continue over the next ten years due to aging demographics." He added that long-term contracts provide clear visibility for future market share growth. According to data from the US Census Bureau, the proportion of US residents aged 65 and older is projected to rise from approximately 17% to around 23% by 2050. Medline's strong performance is expected to dispel earlier doubts caused by its lengthy path to going public. Although the company submitted a confidential IPO application as early as the end of 2024, its plans were hindered by uncertainties over tariffs and the subsequent US government shutdown. After its listing in December, its stock price is expected to outperform US IPOs raising $10 billion or more, with a weighted average return of 16% in the first month. Some analysts are more cautious due to the impact of tariffs imposed by the Trump administration. Rothschild & Co.'s Redburn initiated coverage of the stock with a target price of $42 and a "neutral" rating, citing dilution effects related to tariffs. They expect profit margins to remain relatively stable between fiscal years 2025 and 2028 due to the impact of tariffs introduced by the US government, especially in the second half of fiscal year 2025 and 2026. Other institutions believe that this impact will dissipate after the short term. Bank of America Corp analysts set a target price of $50, citing Medline's leading position in the US medical surgical manufacturing and distribution field. They emphasized that after digesting tariff-related costs, the company's organic growth rate is expected to reach the mid- to high-single digits in the long term by 2027, and earnings before interest, taxes, depreciation, and amortization (EBITDA) will also accelerate. Truist Securities' senior equity research analyst, Jalandra Singh, set a target price of $52. He highlighted Medline's manufacturing and distribution network, as well as extensive procurement and partnerships with third-party suppliers, which he believes create a self-reinforcing cycle of adoption, retention, and expansion. Singh added that in 2024, Medline generated over $16 billion in revenue from existing "key supplier" customers. As these relationships mature, the company has been systematically converting low-margin third-party products into high-margin Medline branded sales. Management expects the penetration rate of Medline's own brands to increase from the current 35% to 60%, and Singh estimates that this shift could release approximately $1 billion in additional gross profit.