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These 2 Penny Stocks Could Reach $ 11, Analysts Say
At its January FOMC meeting, the Federal Reserve kept interest rates stable – they’re almost at their lowest now, and unsurprisingly, the Fed is keeping them there. Fed Chairman Jerome Powell may have fueled some market pessimism when he spoke after the meeting and pointed out that unemployment, which has risen in recent months. For market watchers seeking support, the Fed’s monetary policy is comforting. The central bank has pledged to buy $ 80 billion a month in treasury bills and has suspended a rate hike, possibly until 2023. At least one of the key strategists sees the current market environment in terms of ‘opportunities. JPMorgan strategist Marko Kolanovic takes an optimistic stance, writing: “We expect the global COVID pandemic to abate rapidly in the coming weeks. In fact, the rate of decline in new cases over the past 2 weeks is the highest on record in the United States and around the world … Central banks should remain accommodating given high unemployment rates and more than one decade of low inflation below their targets… In short, turbulence over time, like this week’s, is an opportunity to switch from bonds to equities. With that in mind, we looked to find exciting opportunities that won’t break the bank, namely penny stocks. These stocks, priced at $ 5 or less, offer investors some of the highest growth potential available in the market. There is also a risk here, as “pennies” are often cheap for a reason, so due diligence is essential. Using the TipRanks database, we identified two penny stocks that achieved a “Strong Buy” consensus rating from the analyst community. Not to mention that each offers huge upside potential, as some analysts see them climbing to $ 11. BioLineRx, Ltd. (BLRX) We’ll start with BioLineRx, a clinical-stage biopharmaceutical company focused on developing new cancer treatments. Oncology is a major area of advanced biopharmony. Cancer is often fatal and often resistant to current treatments – and these treatments themselves often cause serious side effects in patients. BioLineRx has an active pipeline of drug candidates, but the most advanced is motixafortide, a synthetic peptide that has completed patient recruitment in a Phase 3 study of stem cell mobilization for autologous bone marrow transplantation. The drug is being studied for its effectiveness in promoting harvesting of bone marrow before cancer treatment. The results of a pre-planned interim analysis showed “statistically significant evidence in favor of motixafortide treatment in the primary endpoint”, evidence that was so significant that recruitment was completed early, with 122 patients at instead of 177. Stem cell mobilization, using motixafortide, is considered the most efficient way for the company to register the new drug for regulatory approval. Based on motixafortide’s potential and the stock price of $ 2.40, some analysts believe now is the time to pull the trigger. Covering BLRX for Oppenheimer, 5-star analyst Mark Breidenbach noted, “Our thesis remains focused on motixafortide in stem cell mobilization, and we see a disconnect between the company’s market capitalization and the market opportunity of the company. motixafortide as a stem cell mobilizer. The main secondary endpoints of GENESIS are expected by mid-2021, and we see little risk on this data… ”The analyst added:“ We believe that the results of the phase 3 GENESIS trial could prompt the majority of transplant physicians choose BL-8040 rather than Mozobil to combine with G-CSF if the drug is approved. The advantage of our thesis includes BL-8040 for use in other auto-HSCT, allo-HSCT, AML and solid tumors. The company has a rich, catalyst-rich oncology pipeline that has sparked collaborations with Novartis, Merck and Genentech. Considering all of the above, Breidenbach rates BLRX as a buy, and its price target of $ 11 suggests a whopping 358% hike for the coming year. (To see Breidenbach’s record, click here) The rest of the street seems to echo Breidenbach’s bullish sentiment. As he has accumulated 3 buys and neither takes nor sells, the consensus is unanimous: BLRX is a strong buy. Adding to the good news, upside potential lands at ~ 428% based on the average price target of $ 12.67. (See BLRX stock market analysis on TipRanks) Kindred Biosciences (KIN) While most biotech companies focus on drugs for humans, we’re not the only market. Kindred Biosciences is a biopharmaceutical company in the veterinary market, developing biological drugs to improve the lives of our pets and working animals. The company describes its mission as'[bringing] to pets the same kinds of safe and effective medicines that members of the human family appreciate. Parvovirus (CPV) is a highly infectious and fatal viral disease that affects dogs. Although vaccines are available, untreated cases can lead to more than 91% mortality. Kindred’s primary pipeline drug, KIND-030, is in development to treat this disease. Currently, the drug candidate follows two pathways in the development process – one for the treatment of established infections and the other as a preventative prophylactic treatment for CPV. The prophylactic study showed positive results, with the treated dogs all avoiding infection, while all of the dogs in the placebo group developed parvovirus disease. KIND-030 has also shown a benefit in mortality when given as a treatment for infection. The drug candidate is in the pivotal study development stage, the last before potential approval. Last month Kindred announced that it had entered into a deal with Elanco Animal Health – a leading veterinary drug maker – to produce KIND-030. Cantor analyst Brandon Folkes sees a lot of potential in Kindred, especially in the company’s deal with Elanco. “A partnership with a leading animal health company, in this case Elanco, is exactly what the company needed, in our opinion. In our opinion, this validates KIN’s new strategic approach, as a drug developer while seeking larger business partners. We believe today’s deal should reinforce for investors that there remains significant value in Kindred’s pipeline, which could be realized over the next 12 to 18 months, ”said Folkes. Kindred is also conducting studies with Tirnovetmab, or KIND-016, an antibody targeting IL31, in the treatment of atopic dermatitis in dogs. The key efficacy study for this drug began in the last quarter of 2020. There is a potentially huge market for an effective treatment of dermatitis in dogs; Over the past six years, there has been a 47% increase in vet visits for dogs with severe itchy skin, and the market is estimated at $ 900 million or more. “Although 2020 has been a difficult year for KIN stock, the company continues to have several penalty shootouts in its diverse pipeline that could reward investors from current levels. With multiple readings in 2021 and the renewed focus on developing its pipeline, we predict 2021 could be a banner year for KIN if it is able to deliver on its pipeline promise, and in particular the dermatitis portfolio. atopic, ”the analyst summarized. To that end, Folkes gives KIN a price target of $ 11, which implies upside potential of 139% for 2021, and an overweight (i.e. buy) rating. (To see Folkes’ track record, click here) Kindred is another company with unanimous Strong Buy analyst consensus, this one based on 5 recent Buy reviews. The stock has an average price target of $ 10.25, which suggests a room for growth of around 124% from the current price of $ 4.59. (See KIN Stock Analysis on TipRanks) For great ideas for penny stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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