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These 2-cent stocks are ready to explode, analysts say
Wall Street has mixed feelings about low-cost stocks. These tickers change hands for less than $ 5 a share or attract investors with their high return potential or make them run for the hills, but why? When we say high potential for return, we are not exaggerating. Bargain price points allow investors to grab more shares than would be possible when investing in other well-known names. Furthermore, even what appears to be a trivial appreciation of stock prices can translate into massive percentage gains. That said, there is a legitimate reason for some investors to be cautious when it comes to penny 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 a possible 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 have a strong purchase consensus rating and a lot of growth potential. Matinas BioPharma (MTNB) By using its lipid nano-crystal platform (LNC) delivery technology, Matinas BioPharma hopes to solve complex challenges related to the oral delivery of small molecules, therapeutic genes, vaccines, proteins and peptides. Currently priced at $ 0.87 each, several Street members believe that 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 optimistic thesis. The therapy was designed as a liposomal nanocrystal (LNC) version of the broad-spectrum antifungal amphotericin B that allows oral administration of the drug. set to start in the short term and the next DSMB data expected in mid-2021, Hazlett points out that this is “the first of several indications potentially with the new antifungal.” Further explaining his optimism about the therapy, Hazlett stated: “There was unanimous recommendation from the independent DSMB to move on to the second EnACT patient cohort, which is a validation event for MAT2203, as progression through the cohorts is assessed by the rate of fungal elimination of the CSF and no rebound of the fungal count, and progression through the EnACT cohorts, therefore, signals MAT2203 activity and its successful crossing of the blood-brain barrier (BBB) to maintain a reduced fungal count in the LCR ”. , the registration for ENHANCE-IT, a face-to-face test of MAT9001 compared to Vascepa de Amarin, has been completed. MAT9001 is the EPA and DPA free fatty acid formulation of MTNB and, according to Hazlett, generates substantially higher levels of EPA in the blood than Vascepa. If that weren’t enough, the company recently announced a collaboration with NIAID to study a liposomal nanocrystal (LNC) remeader formulation from Gilead, for an oral formulation of COVID-19 therapy. “We believe that this collaboration further validates Matinas’ LNC technology,” commented Hazlett. In line with his optimistic stance, Hazlett classifies MTNB as Buy, and his $ 5 price target implies room for an impressive 474% potential in the next 12 months. (To see Hazlett’s history, click here) Moving now to the rest of the street, other analysts echo Hazlett’s sentiment. As only purchase recommendations have been published in the past three months, MTNB obtains consensus from Strong Buy analysts. With the average price target of $ 4, shares may rise 359% from current levels. (See MTNB stock analysis at TipRanks) Equillium (EQ) Building on an in-depth understanding of immunology and its role in disease, Equillium is developing innovative therapies for severe autoimmune and inflammatory diseases. With the shares trading at $ 4.25, some analysts think that now is the time to pull the trigger. After the company’s Analyst Day highlighting its clinical programs for anti-CD6 monoclonal antibody itolizumab, Leerink analyst Thomas Smith remains optimistic about his long-term growth prospects. During the event, EQ released responses from individual patients along with biomarker analyzes, coming in the wake of recent positive provisional data from the first three cohorts of the Phase 1b EQUATE trial studying itolizumab in acute graft versus host disease (aGVHD). In the future, the company wants to conduct dose expansion in Cohorts 2 and 3, enrolling three additional patients in each cohort, with first-line trial results expected for 1H21. Looking at the initial data from the Phase 1b EQUATE trial, it showed rapid, deep and durable responses to itolizumab in aGVHD, in Smith’s opinion. As for the updated data, there was an overall response rate (ORR) of 80% at all doses on day 57, with 8 out of 10 patients achieving a complete response (CR). Furthermore, therapy was also linked to the ability to gradually reduce and reduce the use of systemic steroids in patients. “These results align with data from biomarkers that show that itolizumab rapidly decreased CD6 expression in CD4 and CD8 T cells. We believe these results are compelling and support EQ’s plans to expand the dosage to additional GVHD patients at dose levels of 0.8 mg / kg and 1.6 mg / kg, ”explained Smith. EQ provided pre-clinical and translational research support for 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 provisional results in LN in 2H21. To this end, Smith assesses EQ a Buy along with a $ 18 price target. If that target is reached next year, investors can pocket a gain of ~ 328%. (To view the history Smith, click here) What does the rest of the Street have to say? 3 purchases and no retentions or sales add up to a strong consensus rating. Given the average price target of $ 15, stocks may skyrocket 328% in next year. (See EQ stock analysis at TipRanks) To find good ideas for low-cost stock trading with attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that brings together all of TipRanks stock insights. Disclaimer: The opinions expressed in this article are only those of the analysts presented. The content should be used for informational purposes only. It is very important to do your own analysis before making any investments.