Those 2 penny stocks could rally as much as $ 11, analysts say
At its FOMC meeting in January, the Federal Reserve held rates stable – 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 worth of Treasury bills every month and has 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 decline 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 offers an opportunity to switch from bonds to stocks. “With that outlook in mind, we set out to find exciting opportunities 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, 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 resistant to topical 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, reported on BLRX for Oppenheimer: “Our thesis continues to focus on motixafortid in the mobilization of stem cells, and we see a separation between the company’s market capitalization and the market opportunity of Motixafortid as a stem cell mobilizer. The key GENESIS secondary endpoints are expected by mid-2021 and we see little risk for this data … “The analyst added,” We believe the results of the Phase 3 GENESIS trial will prompt the majority of transplant doctors might choose to combine BL-8040 with G-CSF instead of Mozobil 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. “With all of this in mind, Breidenbach rates BLRX as a buy, and its target price of $ 11 points to an uptrend of a whopping 358% for the coming year. (To see Breidenbach’s track record, click here.) The rest of the street seems 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 marketplace developing biological medicines to improve the lives of our pets and work animals. The company describes its mission as'[bringing] Pet the same safe and effective medications that human family members enjoy. Parvovirus (CPV) is a highly infectious and fatal viral disease that affects dogs. While vaccines are available, untreated cases can have a mortality rate of over 91%. Kindred’s lead drug in the pipeline, KIND-030, is currently in development for the treatment of this disease. The drug candidate is currently pursuing 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 dogs treated 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 it had entered into an agreement with Elanco Animal Health, a major veterinary drug company, to manufacture KIND-030. Cantor analyst Brandon Folkes sees a lot of potential in Kindred, especially in the company’s agreement with Elanco. “A partnership with a leading animal health company, in this case Elanco, is exactly what the company needs from our point of view. This confirms, in our view, KIN’s new strategic approach as a drug developer to find 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 for dogs with severely itchy skin and the market is valued at $ 900 million or more. “While 2020 was a tough year for KIN stock, the company continued to take several shots on goal from its diversified pipeline that could reward investors at current levels. 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 price target of $ 11, which means an upside of 139% in 2021 and an overweight (i.e. buy). (To see Folkes’ track record, 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 presented analysts. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.