Financiers who purchased Beyond Meat stock throughout its public offering in early Might saw a 163% pop on the very first day, setting a brand-new record and a celebratory tone for a hectic IPO season which has actually seen half a lots high-value business get in the general public markets.

While brand-new heights might show that things can just go downhill from there, UBS expert Jason Draho believes it’s prematurely to call the IPO market a bubble, Draho composed in a note released Monday.

“Triple-digit returns plead the concern of whether another IPO bubble is forming. It’s reasonable to state that the IPO market is getting warmer simply based upon the returns,” Draho stated. “These returns recommend a hot, not bubbly, IPO market, however there has actually been an inflection around the Lyft IPO, as the marketplace has actually gotten hotter ever since.”

Rather, the longterm momentum of the marketplace will expose itself in summer or fall, when the very first of the huge IPOs of the year report their 2nd and 3rd quarter revenues and financiers get a sense of whether the business are really worth what they trade at, Draho reckons.

Learn More: These are the slides about Slack’s costs, sales and consumer development that the CFO is wagering its IPO on

“That’s likewise when six-month lock-up contracts start to end, making it possible for pre-IPO investors to begin offering in big scale, possibly putting down pressure on stock rates,” Draho stated. “All this recommends a runway of about 6 more months for this hot IPO market, after which it might continue or sputter out, depending upon how the present IPOs carry out.”

In addition to the efficiency of business like Zoom and Uber, Draho believes the marketplace might ultimately cool down just due to the fact that there aren’t enough unicorn business going public.

“There requires to be a real supply of IPOs, preferably by unicorns, for a hot market to even exist,” he composed. “Unlike the dotcom period when business went public after just a couple of years of operations in order to raise capital, start-ups today have higher access to personal capital and are remaining personal a lot longer. Subsequently, we ought to anticipate far less IPOs in this hot market, disallowing a shift towards much earlier public listings.”