If you’re looking for penny stocks to buy right now, analysts may be a point of focus. These market participants take a stake in their outlook for certain companies. While you may not think penny stocks are in their wheelhouse, there are plenty of firms looking for emerging companies to put their name on.
Penny Stocks TL;DR 30-Second Summary
- Though penny stocks are risky, they don’t scare Wall Street analysts from covering them
- Many firms will look at penny stocks for the potential of emerging growth companies
- These firms might offer deeper insight into what they see as future prospects to justify a certain rating and price target
- Analyst ratings should be used as just one piece of your due diligence process, not the main factor
- Today we look at 3 penny stocks with bulish ratings and targets from analysts
Analyst ratings can be a way for you to gain insight into specific companies. In most cases, these firms will do a deep dive into the prospects of companies’ business models to justify their rating and price target. While these might be exciting to see, analyst reports should only be one piece of your overall due diligence process. Today we look at a handful with a bullish outlook from Wall Street firms.
Penny Stocks To Buy [According To Analysts]
- Katapult Holdings Inc. (NASDAQ: KPLT)
- Leap Therapeutics (NASDAQ: LPTX)
- AcelRx Pharmaceuticals (NASDAQ: ACRX)
1. Katapult Holdings Inc. (NASDAQ: KPLT)
eCommerce finance company Katapult Holdings has been in our spotlight for weeks at this point. But it wasn’t until this month that we began noticing something interesting about the company. Insiders started buying up shares when tax-loss selling is usually the trend. At the time of our article, “3 Hot Penny Stocks To Buy In December According To Insiders,” Director Brian Hirsch reported the purchase of 60,000 shares of KPLT stock. Since then, other officers and directors of the company have followed suit.
Katapult’s point-of-sale lease-to-own financing solution is driving attention in the market. Last month shares began gaining steam after reporting an earnings beat on EPS and sales. It recorded total revenue of $71.7 million in the quarter for a total of
$229.8 million year-to-date, an increase of 32% year-to-date versus the period in the previous year.
KPLT Stock Forecast
It makes sense to see what analysts think about KPLT stock with earning growth like this. Cantor Fitzgerald currently has a $6 price target on the penny stock. That would represent an expected upside of 73% based on current levels. We’ll have to see what 2022 has in store for the eComm penny stock.
2. Leap Therapeutics (NASDAQ: LPTX)
Leap is another one of the hot penny stocks we’ve recently watched. Shares of the biotech company have climbed more than 90% since the beginning of September. Leap gained interest from traders last quarter after announcing positive data. This was from a study of its DKN-01 treatment candidate combined with BeiGene’s tislelizumab and chemotherapy. The combo is for patients with gastric or gastroesophageal junction cancer. The company also raised $90 million to develop the platform, among other financial earmarks.
Commenting on 2021’s progress, Douglas E. Onsi, President and Chief Executive Officer of Leap, said in the company’s Q3 update, “We presented positive new data at ESMO of DKN-01 in combination with BeiGene’s tislelizumab and chemotherapy demonstrating compelling overall response rates in patients with first-line gastric or gastroesophageal junction (G/GEJ) cancer, particularly those patients whose tumors expressed high levels of DKK1 or low PD-L1…We look forward to presenting additional data from the DisTinGuish study early next year and aggressively advancing DKN-01 into the next stages of development in G/GEJ and other cancers.”
LPTX Stock Forecast
The most recent firm to weigh in with an LPTX stock forecast is Mizuho. In October, the firm started Leap with a Buy and placed a $6 target on the stock. Based on current levels, that puts an expected upside from the firm at 84%. With more presentations in the pipeline, it will be interesting to see how LPTX stock fares in 2022.
3. AcelRx Pharmaceuticals (NASDAQ: ACRX)
AcelRx hasn’t performed well in 2021, but apparently, that doesn’t seem to have been an issue for analysts. The specialty pharmaceuticals company has been focused on commercializing its product candidates, including DSUVIA for acute pain management and Zalviso, which is being studied in the US for moderate-to-severe pain reduction in medically supervised settings.
Both of these products are approved in Europe, according to AcelRx. Meanwhile, the company has also been undertaking a new acquisition of Lowell Therapeutics. This deal would bring in Lowell’s pipeline treatments, including Niyad for treating acute kidney injury. It has received Breakthrough Device Designation from the FDA but is not commercially approved in the US yet. Since the deal was expected to close this quarter, some attention seems to have been placed on the timing of things at year-end.
ACRX Stock Forecast
While there’s much to be desired from the market after this year, analysts remain bullish. Most recently, Cantor Fitzgerald adjusted its rating to $4 but maintained an Overweight rating. Based on current trading levels, that target sits 615% higher right now. With more details still in the air about the pending acquisition, it could be something to keep in mind for 2022 if ACRX stock is on your watch list right now.
Penny Stocks To Buy According To Analysts
When it comes to penny stocks, things can change at any moment. That is good and bad for traders, especially when you’re looking for specific catalysts. For example, in the case of biotech, some stocks may have overwhelmingly strong trends. But one misstep in a trial could mean a different trend immediately after.
Then again, that could be the exact opposite if positive news is the case. No matter what, it’s important to research beyond headlines and ratings to get a complete picture for yourself. Then you can decide which are the best penny stocks to buy and what you might want to avoid.
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