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These 2-cent stocks are ready to explode, analysts say
Wall Street has mixed feelings about penny stocks. These tickers that change hands for less than $ 5 a share attract investors with their high yield potential or make them run for the hills, but why? When we say high performance potential, we are not exaggerating. Offer price points allow investors to get hold of more stocks than is possible by investing in other more well-known names. What’s more, even what feels like a trivial stock price appreciation can translate into massive percentage gains. That said, there is a legitimate reason some investors are wary when it comes to penny stocks. The risk involved with these plays scares the faint of heart, as very real issues, such as weak fundamentals or overwhelming headwinds, could be masked by low stock prices. So how should investors approach a potential penny stock investment? Following the lead of the analyst community. These experts bring in-depth knowledge of the industries they cover and substantial experience to the table. With this in mind, we used the TipRanks database to find two compelling penny stocks, according to Wall Street analysts. Both tickers boast a Strong Buy consensus rating and great upside potential.Matinas BioPharma (MTNB) By utilizing its lipid nanocrystal (LNC) platform delivery technology, Matinas BioPharma hopes to solve complex challenges related to oral delivery of small molecules, therapeutic genes, vaccines, proteins and peptides. Currently priced at $ 0.87 each, several members of The Street believe their stock price presents an attractive entry point. Writing for BTIG, 5-star analyst Robert Hazlett points to MAT2203 as a key component of his bullish thesis. The therapy was designed as a liposomal nanocrystalline (LNC) version of the broad-spectrum antifungal amphotericin B that allows oral drug administration Prior to the EnACT phase 2 trial evaluating the candidate in cryptococcal meningitis, with enrollment for cohort 2 which will begin short-term and the next DSMB data is expected in mid-2021, Hazlett notes that this is “the first of several potential indications with the new antifungal.” Further explaining his optimism about the therapy, Hazlett stated: “There was a unanimous recommendation by the independent DSMB to move to the second EnACT patient cohort, which is a validation event for MAT2203, as progression through the cohorts is evaluated by the rate of fungal clearance in the CSF and the absence of rebound in the fungal count.and progression through the EnACT cohorts, therefore, signals the activity of MAT2203 and its successful crossing of the blood-brain barrier (BBB) to maintain a reduced CSF fungal count. ”Enrollment for ENHANCE-IT, a direct test of MAT9001 compared to Vascepa de Amarin, has been completed. MAT9001 is the free fatty acid formulation of MTNB from EPA and DPA, and according to Hazlett, generates substantially higher levels of EPA in the blood than Vascepa. If that wasn’t enough, the company recently announced a collaboration with the NIAID to study a liposomal nanocrystal ( LNC) of Gilead’s remdesivir, for an oral formulation of COVID-19 therapy. “We believe this collaboration further validates Matinas’ LNC technology,” Hazlett said. In line with her bullish stance, Hazlett rates MTNB as a Buy, and her $ 5 price target implies room for an impressive 474% upside potential in the next 12 months. (To see Hazlett’s track record, click here) Turning now to the rest of the street, other analysts echo Hazlett’s sentiment. As only Buy recommendations have been published in the last three months, MTNB obtains a Strong Buy analyst consensus. With the average price target of $ 4, the stock could skyrocket 359% from current levels. (See the analysis of MTNB values in TipRanks) Equillium (EQ) Leveraging an in-depth understanding of immunology and its role in disease, Equillium is developing innovative therapies for severe autoimmune and inflammatory disorders. With the stock trading at $ 4.25, some analysts think the time has come to pull the trigger. Following the company’s Analyst Day highlighting its clinical programs for the anti-CD6 monoclonal antibody itolizumab, Leerink analyst Thomas Smith remains optimistic about its long-term growth prospects. During the event, EQ released individual patient responses along with biomarker analyzes, immediately following recent positive interim data from the first three cohorts of the phase 1b EQUATE trial studying itolizumab in acute graft disease. against host (aGVHD). In the future, the company wants to carry out a dose expansion in cohorts 2 and 3, by enrolling an additional three patients in each cohort, and first-line results of the trial are expected in 1H21. Looking at the initial data from the phase 1b EQUATE trial, it showed rapid, deep, and long-lasting responses to itolizumab in aGVHD, according to Smith. Looking at the updated data, there was an overall response rate (ORR) of 80% at all doses by day 57, with 8 out of 10 patients in total achieving a complete response (CR). In addition, the therapy was also linked to the ability to lower and lower the dose of systemic steroid use in patients. “These results were aligned with biomarker data showing that itolizumab rapidly decreased CD6 expression on CD4 and CD8 T cells. We believe these results are compelling and support EQ’s plans to expand dosing to additional GVHD patients at dose levels of 0.8 mg / kg and 1.6 mg / kg, “explained Smith. If that wasn’t enough, EQ presented preclinical and translational research supporting the Phase 1b EQUALIZE trial for itolizumab in systemic lupus erythematosus (SLE) and lupus nephritis (LN), and Smith expects first-line results in SLE to arrive in 1Q21 and results interim in LN in 2H21 along with a price target of $ 18. If this target is met in the next year, investors could pocket a profit of ~ 328%. (To view Smith’s history, click here) ¿ What does the rest of the street have to say? 3 Buys and no holds or sales add up to a consensus rating of Strong Buy. Given the average price target of $ 15, the stock could skyrocket 328% in the next year. Check out the stock analysis of EQ on TipRanks) To find good ideas for trading penny stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that ties together all TipRanks share perceptions. Disclaimer: The opinions expressed in this article are solely those of prominent 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.
