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These two penny stocks could rise to $ 11, analysts say
At its FOMC meeting in January, the Federal Reserve kept interest rates steady – they are now close to the bottom, and to no one’s surprise, the Fed is keeping them there. Fed Chairman Jerome Powell may have had some pessimism in the market when he spoke after the meeting, pointing out that unemployment, which has been rising in recent months. For market watchers seeking support, there is comfort in the Fed’s monetary policy. The central bank is committed to buying $ 80 billion a month in treasury notes, and has driven a rate hike, likely until 2023. At least one top strategist sees the current market environment in terms of opportunities. JPMorgan strategist Marko Kolanovic takes a positive stance, writing: ‘We expect the global COVID pandemic to decline rapidly in the coming weeks. In fact, the rate of decline in new business over the past two weeks is the highest recorded in America and worldwide … Central banks must remain accommodative, given the rising unemployment rates and over a decade of low inflation falling below their targets … Short turmoil like this week’s are opportunities to switch from bonds to equities. “Considering these prospects, we intend to find exciting opportunities that will not break the bank, namely penny stocks. These stocks, at $ 5 or less, offer investors the highest growth potential in the market. There is also a risk here, because the ‘pennies’ are often priced low for a reason, so the necessary caution is essential. Using TipRanks’ database, we identified two penny stocks that achieved a consensus rating of a ‘strong buy’ from the analyst community. Not to mention, each offers great upside potential, as some analysts see them rising to $ 11. BioLineRx, Ltd. (BLRX) We start with BioLineRx, a clinical stage of biopharma focusing on the development of new cancer treatments. Oncology is an important field for leading biopharmacies. Cancer is often fatal and is often resistant to current treatments – and such treatments will often cause serious side effects in patients. BioLineRx has an active pipeline of drug candidates, but the most advanced is motixafortide, a synthetic peptide that completed patient enrollment in a Phase 3 study on stem cell mobilization for autologous bone marrow transplantation. The drug is being investigated for its effectiveness in promoting the harvesting of bone marrow before the treatment of cancer. Results of a pre-planned interim analysis showed that ‘statistically significant evidence in favor of treatment with motixafortide was at the primary endpoint’, evidence that was so significant that enrollment was completed early, with 122 patients instead of 177. Stem cell mobilization, with using motixafortide, was seen as the company’s most effective way of registering the new medicine for regulatory approval. Given the potential of motixafortide and the $ 2.40 share price, some analysts think now is the time to pull the trigger. 5-star analyst Mark Breidenbach, who treats BLRX for Oppenheimer, commented: ‘Our dissertation is still focused on motixafortide in stem cell mobilization, and we see a gap between the company’s market capitalization and motixafortide’s market opportunity as a stem cell mobilizer. Important secondary endpoints of GENESIS are expected by mid-2021, and we see that there is little risk of hitting this data … ‘The analyst added:’ We believe that results of the Phase 3 GENESIS trial outperform the majority of transplant physicians may encourage you to choose BL-8040 over Mozobil. combine with G-CSF if the drug has been approved. Upside down our thesis includes BL-8040 for other auto-HSCTs, allo-HSCTs, AML and solid crops. The company boasts a catalyst-rich, deep oncology pipeline that has attracted collaboration with Novartis, Merck and Genentech. Given all of the above, Breidenbach rates BLRX as a buy, and its $ 11 price target indicates a whopping 358% upside for the coming year. (To see Breidenbach’s broad record, click here.) The rest of the street apparently reflects Breidenbach’s strong sentiment. Since it sells 3 purchases and no ownership or sale, the consensus is unanimous: BLRX is a strong buy. In addition to the good news, the upside potential is ~ 428%, based on the average price target of $ 12.67. (See BLRX stock analysis on TipRanks) Kindred Biosciences (KIN) Although most biotechnology companies focus on human medicine, we are not the only market. Kindred biosciences is a biopharmaceutical company in the veterinary market that develops biological medicine to improve the lives of our pets and working animals. The company describes its mission as'[bringing] to pets the same types of safe and effective medicine that human family members enjoy. ‘Parvovirus (CPV) is a very contagious and very deadly viral disease that affects dogs. While vaccines are available, untreated cases can account for more than 91% mortality. Kindred’s main pipeline drug, KIND-030, is currently being developed as a treatment for this disease. The drug candidate is currently following two paths in the development process – one for the treatment of established infections, and one as a preventative treatment for CPV. The prophylactic study showed positive results, with treated dogs all avoiding infection, while all the dogs in the placebo group developed parvovirus disease. KIND-030 also showed a mortality benefit when given as a treatment for infection. The drug candidate is in the most important stage of development, the last before possible approval. Last month, Kindred announced that it had entered into an agreement with Elanco Animal Health – a major veterinary medicine manufacturer – for the manufacture of KIND-030. Brandon Folkes, an analyst at the offices, sees a lot of potential in Kindred, especially in the deal with Elanco. ” A partnership with a leading animal health company, in this case Elanco, is, in our view, exactly what the company needed. In our view, this confirms the new strategic approach of KIN as a developer of medicine while seeking larger commercial partners. We believe that today’s transaction should strengthen for investors that there is significant value in the Kindred pipeline, which can be realized over the next 12 to 18 months, ”says Folkes. Kindred is also conducting studies of Tirnovetmab, or KIND-016, an antibody targeting IL31, in the treatment of atopic dermatitis in dogs. The core activity study of this drug started in the last quarter of 2020. There is a huge market for successful dermatitis treatment for dogs; in the last six years, there has been a 47% increase in visits to veterinarians for dogs with severe itchy skin, and the market is estimated at $ 900 million or more. ‘Although 2020 has been a difficult year for KIN equities, the company still has a shot at targeting its diversified pipeline that can reward investors of current levels. With multiple readings in 2021 and the renewed exclusive focus on the development of its pipeline, we expect 2021 to be a banner year for KIN if it can deliver on the promise of its pipeline and in particular its atopic dermatitis portfolio, ‘the analyst said. . summed up. For this, Folkes gives KIN a price target of $ 11, which implies an upward potential of 139% for 2021, and an overweight (ie buy) rating. (To view Folkes’ record, click here.) Kindred is another company with a unanimous consensus of Strong Buy analysts, based on 5 recent Buy reviews. The stock has an average price target of $ 10.25, indicating room for ~ 124% growth from the current trading price of $ 4.59. (See KIN stock analysis on TipRanks) Visit TipRanks ‘best-selling stocks, a new tool that combines all of TipRanks’ stock insights to find great ideas for penny stocks at attractive valuations. Disclaimer: The opinions expressed in this article are solely those of the proposed analysts. The content is for informational purposes only. It is very important to do your own analysis before investing.