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2 “Strong Buy” Penny stock up over 200% on the horizon
Let’s talk about risk and the big picture. The time is right, because the high risk – caused by the COVID-19 pandemic – is finally diminishing thanks to the ongoing vaccination program. COVID leaves behind an economy that was forcibly shut down a year ago, while in the midst of major expansion, stimulated by deregulation policies. While the new Biden administration is in the process of rolling back many Trump policies, at least the economy is recovering for the time being. And this puts us in danger. A time of economic growth and recovery is a forgiving time to switch to risk investment, as general economic growth tends to cancel out. Two JPMorgan strategists recently agreed, promoting the view that the fundamentals of the market are still healthy and that the small- to mid-cap sector will continue to rise. First, on terms and conditions, quantitative strategist Dubravko Lakos-Bujas wrote: “While the recent technical sell-off and short squeeze are getting a lot of attention, we believe the positive macro set-up, improved fundamentals and COVID-19 outlook , the strength of the USA. both the consumer and the reflation theme continue to play the larger forces. Not only should this further boost equity, but it also remains beneficial for a continued rotation towards economic reopening … ”Building on this, Eduardo Lecubarr, head of the Small / Mid-Cap Strategy team, now sees opportunities for investors, especially in the smaller value. shares. “We maintain our view that 2021 will be a stock pickers paradise with great opportunities to make money if you are willing to go against the grain … Many macro indicators have fallen in January, but SMid-Caps and stocks in overall continued to rise higher, ”noted Lecubarr. And if you’re inclined to look at risky, small- to mid-cap stocks, you’ll find yourself drawn to penny stocks. The risk associated with these moves is a deterrent to the faint-hearted, as very real issues such as weak fundamentals or overwhelming headwinds can be masked by low stock prices. So, how should investors approach a potential investment in penny stocks? By following a signal from 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 TipRanks’s database to find two attractive penny stocks, according to Wall Street analysts. Both tickers have a Strong Buy consensus rating and could rise more than 200% higher in the next year. CNS Pharmaceuticals (CNSP) We start with CNS Pharmaceuticals, a biotechnology company focused on the treatment of glioblastomas, a class of aggressive tumors that affect the braid and spinal cord. These cancers, while rare, are almost always terminal, and the CNS is working on a new therapy designed to more effectively cross the blood-brain barrier to attack glioblastoma. Berubicin, the CNS lead drug candidate, is an anthracycline, a powerful class of chemotherapy drugs derived from the Streptomyces bacteria strains, and used in the treatment of a wide variety of cancers. Berubicin is the first drug in its class to show promise against glioblastoma cancers. The drug candidate has completed its phase 1 clinical trial, in which 44% of patients showed a clinical response. This number included one patient who showed a ‘durable complete response’, defined as a demonstrated lack of detectable cancer. Following the success of the Phase 1 trial, the CNS has applied for and received FDA approval for its Investigational New Drug filing. This gives the company the go-ahead to conduct a phase 2 study in adult patients, an important next step in the drug’s development. CNS plans to start the mid-phase trial in 1Q21. Based on the potential of the company’s assets in glioblastoma, and with a stock price of $ 2.22, several analysts believe now is the time to buy. One of the bulls is Brookline’s five-star analyst Kumaraguru Raja, who is taking an optimistic stance on CNSP stocks. “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 gain access to brain tumors … Berubicin has promising clinical data in a phase 1 trial in recurrent glioblastoma (rGBM) and has orphan drug designation for the treatment of malignant gliomas of the FDA. We model the approval of Berubicin for the treatment of recurrent glioblastoma in 2025 based on the Phase 2 data with a 55% success rate for approval. We expect peak sales of $ 533 million in 2032, ”said Raja. “CNS pipeline also includes WP1244 (novel DNA binder) which is 500x more potent than daunorubicin in inhibiting tumor cell proliferation and is expected to enter the clinic in 2021 … In vivo testing in orthotopic models of brain cancer showed high brain uptake of WP1244 and subsequent anti-tumor activity, ”the analyst added. To that end, Raja rates CNSP as a Buy, and its $ 10 price target implies room for a staggering 350% upside potential in the next 12 months. (To view Raja’s track record click here) What does the rest of the street have to say? Buy 3 and hold 1 contribute to a strong buy consensus rating. Given the median price target of $ 8.33, stocks could rise ~ 275% in the coming year. (See CNSP Stock Analysis on TipRanks) aTyr Pharma (LIFE) The next stock we’re looking at, aTyr Pharma, has a focus on inflammatory diseases. Its lead drug candidate, ATYR1923, is a neuropilin-2 (NRP2) agonist, which acts through the receptor proteins expressed by the NRP2 gene. These pathways are important for cardiovascular development and disease, and play a role in the inflammatory lung disease pulmonary sarcoidosis. In December, the company reported that the drug candidate had completed 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 in 3Q21, and will serve as information for further studies of ATYR1923, including against other forms of inflammatory lung disease. On a more direct note, the company announced top results in early January from another Phase 2 clinic involving ATRY1923 – this time for the treatment of patients hospitalized with severe respiratory complications from COVID-19. The results were positive and showed that a single dose of ATYR1923 (at 3 mg / kg) resulted in a median recovery time of 5.5 days. Overall, 83% of patients dosed in this way saw recovery in less than a week. About LIFE for Roth Capital, five-star analyst Zegbeh Jallah noted, “We like the risk profile here, with two shots on target, and the 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 could result in a doubling or more of the market cap as these opportunities hardly seem to be seen by investors responsible. In line with his optimistic approach, Jallah gives LIFE stock a Buy rating and his $ 15 price target suggests an impressive 277% potential upside for the coming year. (To view Jallah’s track record, click here) Other analysts are on the same page. With 2 additional buy ratings, word on the street is that LIFE is a strong buy. In addition, the average price target is $ 13.33, indicating robust growth of ~ 236% from the current price of $ 3.97. (See LIFE 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 TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are only those of the recommended analysts. The content is provided for informational purposes only. It is very important to conduct your own analysis before launching any inve stering does.