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2 “strong buy” penny shares with more than 200% increase on the horizon
Let’s talk about risk and the big picture. It is an appropriate time, as the great risk – posed by the pandemic COVID-19 – is finally decreasing thanks to the ongoing vaccination program. COVID is leaving behind an economy that was forced to paralyze a year ago amid a major expansion, driven by deregulation policies. While the new Biden administration is busy reversing many Trump policies, at least for now the economy is recovering. And that brings us risks. A time of economic growth and recovery is a time of forgiveness to move towards risky investments, as general economic growth tends to elevate everything. Two JPMorgan strategists recently intruded, promoting the view that the market fundamentals are still sound and that the small and mid cap sector will continue to grow. First, on general conditions, quantum strategist Dubravko Lakos-Bujas wrote: “Although the recent technical sale and tightening of sales are receiving a lot of attention, we believe that the positive macro configuration, the fundamentals improving and the perspective of COVID- 19, the strength of the US consumer, as well as the theme of reflection, remains the biggest forces at stake. This should not only boost the net worth even more, but it remains favorable for the continuous rotation for the economic reopening … ”Based on this, Eduardo Lecubarr, head of the small / mid caps strategy team, sees opportunity for investors now, especially in the lower shares value. “We maintain our view that 2021 will be an investor’s paradise with great opportunities to make money if you are willing to go against the current … Many macro indicators fell in January, but SMid-Caps and equities in general continued to rise , ”Lecubarr noted. And if you’re inclined to look for high-risk, small to mid cap stocks, you’ll be attracted to low-value stocks. The risk involved in these moves scares the weakest, as very real problems, such as weak fundamentals or oppressive winds, can be masked by low stock prices. So, how should investors approach potential investment in penny stocks? Following a suggestion from the analyst community. These experts bring in-depth knowledge of the sectors they cover and substantial experience to the table. With that in mind, we used the TipRanks database to find two attractive stocks, according to Wall Street analysts. Both tickers boast a strong buying consensus rating and could rise by more than 200% next year. CNS Pharmaceuticals (CNSP) We will start with CNS Pharmaceuticals, a biotechnology company focused on treating glioblastomas, a class of aggressive tumors that attack the braid and spinal cord. These cancers, although rare, are almost always terminal, and the CNS is working on a new therapy designed to more effectively cross the blood-brain barrier and attack glioblastoma. Berubicin, the main candidate drug for CNS, is an anthracycline, a potent class of chemotherapy drugs derived from the strains of Streptomyces bacteria and used to treat a wide variety of cancers. Berubicin is the first drug in its class to show promise against glioblastoma cancer. The candidate drug completed its Phase 1 clinical trial, in which 44% of patients had a clinical response. This number included a patient who had a ‘Complete Durable Response’, defined as a demonstrated absence of detectable cancer. Following the success of the Phase 1 study, the CNS applied for and received FDA approval for its application of a new investigative drug. This gives the company the go-ahead to conduct a Phase 2 study in adult patients, an important next step in drug development. CNS plans to start the intermediate test in 1Q21. Based on the potential of the company’s glioblastoma asset, and the stock price at $ 2.22, several analysts believe that now is the time to buy. Among the optimists is Brookline’s 5-star analyst, Kumaraguru Raja, who takes an optimistic stance on CNSP’s actions. “Until now, the inability of anthracyclines to cross the blood-brain barrier has prevented their use for the treatment of brain cancers. Berubicin is the first anthracycline to cross the blood-brain barrier in adults and access brain tumors … Berubicin has promising clinical data in a Phase 1 study in recurrent glioblastoma (rGBM) and is designated as an orphan drug for the treatment of malignant gliomas from the FDA. We modeled the approval of Berubicin for the treatment of recurrent glioblastoma in 2025 based on Phase 2 data with a 55% probability of success for approval. We model peak sales of $ 533 million in 2032, ”said Raja. “The CNS pipeline also includes WP1244 (a new DNA binding agent) which is 500 times more potent than daunorubicin in inhibiting tumor cell proliferation and is expected to enter the clinic in 2021 … In vivo tests on orthotopic models of brain cancers showed high absorption of WP1244 by the brain and subsequent anti-tumor activity. ”For this purpose, Raja assesses the CNSP as a Buy, and its $ 10 target price implies room for an impressive 350% upside potential. over the next 12 months. (To see Raja’s history, click here) What does the rest of the Street have to say? 3 purchases and 1 wait add up to a strong consensus rating. Given the average price target of $ 8, 33, stocks may go up ~ 275% next year. (See CNSP stock analysis at TipRanks) aTyr Pharma (LIFE) The next action we will see, aTyr Pharma, focuses on inflammatory diseases. Your main drug candidate , ATYR1923, is a Neuropilin-2 agonist (NR P2), working through receptor proteins expressed by the NRP2 gene. These pathways are important for cardiovascular development and disease and play a role in pulmonary sarcoidosis, an inflammatory lung disease. In December, the company reported that the drug candidate had completed the enrollment of 36 patients in a Phase 1b / 2a clinical trial, testing the drug in the treatment of pulmonary sarcoidosis. The results of the current study are expected for 3Q21 and will inform other studies of ATYR1923, including against other forms of inflammatory lung disease. On a more immediate note, in early January the company announced the first-line results of another Phase 2 clinician involving ATRY1923 – this time in the treatment of hospitalized patients with severe COVID-19 respiratory complications. The results were positive, showing that a single dose of ATYR1923 (at 3 mg / kg) resulted in an average recovery time of 5.5 days. Overall, of the patients administered this way, 83% saw recovery in less than a week. Covering LIFE for Roth Capital, 5-star analyst Zegbeh Jallah noted: “We like the risk profile here, with two shots on goal, and updated data from the COVID study is expected in the coming months. It was also recently announced that data from aTyr’s Pulmonary Sarcoidosis program will be reported in 3Q21 … the success of any of these studies may result in a doubling or more of the market value, as these opportunities appear to be poorly accounted for by investors . ”In line with his optimistic approach, Jallah gives LIFE’s shares a Buy rating and its $ 15 target price suggests an impressive 277% increase potential for next year. (To view Jallah’s history, click here) Other analysts are on the same page. With 2 additional Purchase classifications, what is said is that LIFE is a Strong Purchase. In addition, the average price target is $ 13.33, suggesting a robust growth of ~ 236% over the current price of $ 3.97. (See LIFE’s stock analysis at TipRanks) To find good ideas for attractively priced stock trading, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all TipRanks stock insights. Disclaimer: The opinions expressed in this article are exclusively those of the analysts presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investments.