Those 2 penny stocks could rally as much as $ 11, analysts say
At its January FOMC meeting, the Federal Reserve held rates steady – they are currently near their lows, and unsurprisingly, the Fed is holding them there. Fed chairman Jerome Powell may have fed some market pessimism when speaking after the meeting, pointing out that unemployment has risen in recent months. For market watchers seeking support, there is consolation in the Fed’s monetary policy. The central bank has pledged to buy $ 80 billion a month in treasury bills and is expected to put a rate hike on hold until 2023. At least one top strategist sees the current market environment in terms of opportunities. JPMorgan strategist Marko Kolanovic takes an optimistic stance and writes: “We assume that the global COVID pandemic will decrease rapidly in the coming weeks. In fact, the pace of decline in new cases in the past two weeks is the fastest ever in the US and worldwide. Central banks should remain accommodative amid rising unemployment and over a decade of low inflation that is below their targets – term turmoil like this week provides an opportunity to switch from bonds to stocks. “With that outlook in mind, we set out to find an exciting opportunity that won’t break the bank, namely penny stocks. Priced at $ 5 or less, these stocks offer investors the highest growth potential available in the market. Again, there is a risk as the “pennies” are often cheap for a reason. Careful examination is therefore essential. Using TipRanks’ database, we identified two penny stocks that received a consensus rating of “Strong Buy” from the analyst community. Not to mention it on that every company has huge upside potential as some analysts see it spike to $ 11. BioLineRx, Ltd. (BLRX) We’re starting BioLineRx, a clinical-stage biopharmaceutical company focused on developing new cancer treatments. Oncology is an important area for state-of-the-art biopharmaceuticals. Cancer is often fatal and often resisable, consistent with current treatments – and these treatments themselves often cause severe side effects in patients. BioLineRx has an active pipeline of drug candidates. The most advanced, however, is motixafortid, a synthetic peptide that has completed patient enrollment in a phase 3 study to mobilize stem cells for autologous bone marrow transplantation. The drug is being studied for effectiveness in promoting bone marrow harvesting prior to cancer treatment. The results of a pre-planned interim analysis showed « statistically significant evidence for motixafortid treatment at the primary endpoint » so significant that enrollment was completed early with 122 patients instead of 177. Mobilizing stem cells using Motixafortid is believed to be the company’s most efficient route to registering the new drug for regulatory approval. Given the potential of Motixafortide and its share price of $ 2.40, some analysts believe now is the time to pull the trigger. Mark Breidenbach, 5-star analyst at BLRX for Oppenheimer, commented, “Our thesis continues to focus on motixafortid in stem cell mobilization, and we see a disconnect between the company’s market cap and Motixafortid’s market opportunity as a stem cell mobilizer. The main GENESIS secondary endpoints are expected by mid-2021, and we’ll see little risk to these data… ”The analyst added,“ We believe the results of the Phase 3 GENESIS trial could lead the majority of transplant doctors to choose BL-8040 instead of Mozobil with G-CSF to combine if the drug is approved. In addition to our work, BL-8040 contains for use in other auto-HSCTs, allo-HSCTs, AML, and solid tumors. The company has a catalyst-rich, deep oncology pipeline that has attracted collaborations with Novartis, Merck and Genentech. “Considering all these points, Breidenbach rates BLRX as a buy, and its price target of USD 11 points to a whopping 358% up for the coming year. (To see Breidenbach’s track record, click here) The rest of the street appears to reflect Breidenbach’s bullish sentiment. With 3 buys and no holds or sells, the consensus is unanimous: BLRX is a strong buy. On top of the good news, the upside is ~ 428% based on the average price target of $ 12.67. (See BLRX stock analysis on TipRanks) Kindred Biosciences (KIN) While most biotech companies focus on human drugs, we’re not the only market. Kindred Biosciences is a biopharmaceutical company in the veterinary market that develops biological medicines to improve the lives of our pets and work animals. The company describes its mission as « bringing to pets the same types of safe and effective medicines that human family members enjoy ». Parvovirus (CPV) is a highly infectious and deadly viral disease that affects dogs. While vaccines are available, untreated cases can have a mortality rate of over 91%. KIND-030, Kindred’s lead drug in the pipeline, is currently being developed for the treatment of this disease. Currently ver the drug candidate follows two paths in the development process – one for the treatment of established infections and one for the prophylactic preventive treatment of CPV. The prophylactic study showed positive results, with all treated dogs avoiding infection while all dogs in the placebo group developed parvovirus disease. KIND-030 also showed a mortality benefit when given to treat infections. The drug candidate is in the crucial study phase of development, the last before possible approval. Last month, Kindred announced that it had entered into an agreement with Elanco Animal Health – a major manufacturer of veterinary medicines – to manufacture KIND-030. Cantor analyst Brandon Folkes sees a lot of potential in Kindred, particularly in the company’s agreement with Elanco. “A partnership with a leading animal health company, in this case Elanco, is exactly what the company needed from our point of view. From our point of view, this confirms KINs n A new strategic approach as a drug developer in the search for larger trading partners. We believe today’s deal should show investors that Kindred’s pipeline continues to have significant value that could be realized in the next 12 to 18 months, ”said Folkes. Kindred is also conducting studies with tirnovetmab or KIND-016, an antibody directed against IL31, for the treatment of atopic dermatitis in dogs. The pivotal efficacy study of this drug began in the final quarter of 2020. There is a potentially huge market for successful dermatitis treatment in dogs. Over the past six years, there has been a 47% increase in veterinary visits to dogs with severely itchy skin and the market is valued at $ 900 million or more. « During 2020 for the KIN share Having been a difficult year, the company continued to take multiple shots on goal from its diversified pipeline that could reward investors at the current level. With multiple readings in 2021 and once again focusing solely on developing its pipeline, we anticipate that 2021 could be a banner year for KIN should it be able to deliver on the promise of its pipeline, and in particular its atopic dermatitis portfolio, so the analyst summarized. To do this, Folkes gives KIN a target price of $ 11, which means an upside potential of 139% for 2021 and an overweight (i.e. buy). (To see Folkes’ success story, click here.) Kindred is another company with a unanimous consensus from Strong Buy analysts based on 5 recent Buy ratings. The stock has an average price target of $ 10.25, indicating ~ 124% growth from the current trading price of $ 4.59. (See KIN Stock Analysis on TipRanks.) To find great ideas for trading penny stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all of the insights into TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is important that you do your own research before making any investment.