Analysts See Big Upside In These Penny Stocks
Whether you’re looking for penny stocks to buy now or ones to add to a watch list, there’s a process involved in finding the best. Of course, a lot will depend on your strategy and outlook on the market. But there are a few basic steps to take. First, understanding why certain stocks move the way that they do.
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Take, for instance, some of the meme stocks or cheaper stocks on Webull & Fidelity. These companies saw their share prices surge thanks to flocks of retail traders scrambling into the market. Lower-priced shares are attractive because even the slightest move in price can mean significant gains for your portfolio.
You also can forget to account for specific fundamental catalysts. Over the weekend, we discussed 10 penny stocks to watch this week based on potential catalysts. These included industry presentations, important trial data, and the like. Understanding what’s coming next can help you identify speculative momentum. Then you’ve also got expert opinions.
Analyst firms can bring another layer into the due diligence process. While they shouldn’t be the only thing to base your investment decisions on, these firms can offer some insight to the table that you might’ve not thought about or missed along the way. In today’s article, we’re looking at a few penny stocks to buy, according to analysts right now. They’ve also been given price targets of more than 100%.
Best Penny Stocks To Buy [according to analysts]
- AIkido Pharma Inc. (NASDAQ:AIKI)
- Selecta Biosciences Inc. (NASDAQ:SELB)
- Progenity Inc. (NASDAQ:PROG)
- 9 Meters Biopharma Inc. (NASDAQ:NMTR)
- Trevi Therapeutics Inc. (NASDAQ:TRVI)
1. Alkido Pharma Inc. (NASDAQ:AIKI)
Alkido Pharma is a unique biotech company. I say this because, at its core, it focuses on developing a portfolio of small-molecule, anti-cancer therapeutics. However, in the last few months, Alkido has evolved into something that closely resembles an incubator of sorts.
The company has made strategic investments into businesses with exposure to popular industries. These include companies like DatChat (NASDAQ:DATS), which has grown in popularity for its blockchain and cybersecurity pegged social media platform. Alkido has also gotten into the budding electric vehicles industry thanks to its latest equity stake.
Recent AIKI Stock News
Late last month, Alkido announced its acquisition of an equity interest in Tevva Motors. This is an electric truck producer with vehicles already on the road. Based in the UK, Tevva has developed medium-duty commercial vehicles that use the company’s EV technology.
An exciting part about this deal is that Alkido thinks that it “represents an opportunity to partake in a rapidly expanding field, with the possibility of an exit in early 2022 as Tevva pursues a public listing.”
AIKI Stock Forecast
This week analysts at HC Wainwright initiated coverage on the company. Along with a Buy rating, the firm missed a $2 price target. Based on the AIKI stock price at the end of last week, the analyst forecast sits 129% higher right now.
2. Selecta Biosciences Inc. (NASDAQ:SELB)
Another one of the biotech penny stocks on this list is Selecta Biosciences. Unlike Alkido, Selecta has found its footing 100% in the biotech arena. The company has developed a platform, ImmTOR, to develop therapies to address different unwanted immune responses. In essence, ImmTOR has been shown to amplify the effectiveness of specific biologic therapies, including autoimmune diseases.
Recent SELB Stock News
On the heels of a collaboration deal last month with Cyrus Biotechnology, Selecta announced a strategic licensing agreement with Takeda Pharmaceutical Company last week. The goal is to develop targeted gene therapies for two indications dealing with lysosomal storage disorders. Under the terms of the agreement, Selecta is entitled to receive an undisclosed upfront payment and up to $1.124 billion in future additional payments throughout the partnership based on milestones. The company is also eligible for tiered royalties on future commercial sales.
SELB Stock Forecast
Numerous analysts cover Selecta Biosciences. However, BTIG Research currently holds one of the most bullish outlooks on the company. The firm has a Buy rating on the stock and a price target of $10. Based on its closing price on October 8, the analyst forecast is 133% higher than current prices.
3. Progenity Inc. (NASDAQ:PROG)
One of the more familiar companies on this list is Progenity. We’ve discussed this among other penny stocks under $1 a few weeks ago. Since then, we’ve watched as PROG stock surged to highs of $2.20 at the start of October. It was also part of the list of stocks with high short interest at the end of September. A $20 million financing became the trigger for a sell-off in the stock over the last week. However, since closing that financing, PROG stock is back on the move.
The company is developing products for molecular testing. The company has worked on advancing things like its PreecludiaTM test to rule out preeclampsia in pregnant patients. A recent study demonstrated that Preecludia could “significantly distinguish” between the presence and absence of preeclampsia.
Recent PROG Stock News
Other than closing a $20 million financing, last month Progenity was granted a patent for its preeclampsia rule-out test. This test is expected to target an addressable market of up to $3 billion annually. With a patent granted, this could help open opportunities for partnerships and additional commercialization opportunities according to Matthew Cooper, Ph.D., chief scientific officer of Progenity.
PROG Stock Forecast
Progenity is another one of the penny stocks with a slew of analysts covering it. The most recent, Piper Sandler, weighed in with an Overweight rating and a $5 target this summer. The target was an increase to its previous $3 target. Based on Friday’s closing price of $1.35, Piper’s outlook is 270% higher right now.
4. 9 Meters Biopharma Inc. (NASDAQ:NMTR)
9 Meters is developing treatments for digestive diseases. It’s been in the spotlight recently for several things, including insider buying and participating in a circuit of industry conferences. Toward the end of September, the company’s CEO presented at the Cantor Healthcare Conference. 9 Meters’ vurolenatide is in Phase 2 for short bowel syndrome. Its other candidate, larazotide, is currently in Phase 3 for non-responsive celiac disease.
Recent NMTR Stock News
Aside from bringing on a new board member last week, 9 Meters announced a partnership with Mend Hunger, which serves individuals and families in need of gluten-free food for medical and health reasons. The partnership will help Mend Hunger’s Pantry Direct program to fulfill requests for gluten-free hunger relief boxes to families throughout the United States. John Temperato, President and Chief Executive Officer of 9 Meters. “Our ultimate objective at 9 Meters is to improve the lives of individuals suffering from debilitating digestive diseases including celiac disease, and we feel the work Mend Hunger is doing is exactly aligned with that goal.”
NMTR Stock Forecast
Among multiple analysts following 9 Meters, BMO Capital was the most recent to weigh in. Right now, the firm has an Outperform rating on the penny stock. It also carries a $5 price target. Based on Friday’s $1.33 closing price, BMO’s forecast is 275% higher right now.
5. Trevi Therapeutics Inc. (NASDAQ:TRVI)
This list of penny stocks is full of biotech names. Trevi rounds things out after recent news and bullish analysts put it on the map. The company is focused on developing its investigational therapy, Haduvio. The treatment targets neurologically medicated conditions, and the company is currently conducting a Phase 2b/3 trial in chronic pruritus. There’s also a Phase 2 trial for chronic cough.
Recent TRVI Stock News
It’s important to not only look at a company’s newswire but also at its filings. In Trevi’s case, the latest filing from last week shows something that has traders excited right now. The company withdrew its filing to offer shares in a private placement. Why could this be a bullish event?
In most cases, when companies raise money in exchange for shares, those shares are sold at a discount. This can become a dilutive event for a stock and, in turn, result in selling pressure from the firms investing in the private placements. Since the offering was withdrawn, the market seems to have taken this as a positive sign.
TRVI Stock Forecast
Analysts at Needham & Company LLC were the most recent to weigh in on TRVI stock. Right now, the firm carries a $10 price target and a Buy. Based on last Friday’s closing price of $1.20, this is 733% higher right now.
Are Penny Stocks Worth It?
Penny stocks are well-known for their volatility, and with that comes higher levels of risk. We looked at five companies that analysts have given their opinions to. Based on current price targets, those opinions are high. However, keep in mind that ratings aren’t the only thing to take into account, and in many cases, companies fall short by wide margins when it comes to reaching those price targets.
At the very least, these forecasts are something to keep in mind when it comes time to do your research. Based on what you find, you may come to a completely different conclusion than Wall Street analysts. In this case, what’s your opinion? Do you agree or disagree with the outlook from the firms giving their perspective on this list of penny stocks?