Penny Stocks To Buy According To 5 Wall Street Analysts
Today we look at a handful of penny stocks to buy, according to Wall Street analysts. It’s an interesting phenomenon when traders use ratings as part of their research methodologies. Sure, the so-called “smart money” supports a firm’s insight and criteria for rating stocks. But, at the end of the day, things can change instantly, especially with penny stocks.
One of the benefits of using analyst information is taking advantage of the additional research that most will conduct. They aren’t just looking at today’s price action. They’re looking for fundamental catalysts based on current operations. Whether it’s biotech stocks, energy stocks, tech stocks, or something completely different, low prices haven’t deterred top Wall Street firms from putting their stamp of approval on some of these names.
What’s more, in all cases, these analysts have given significantly higher price targets than where these penny stocks are trading in the stock market today. The question you have to answer: are analysts right, and do these companies deserve a place on your list of penny stocks in 2022?
5 Penny Stocks To Buy [according to analysts]
Tenaya Therapeutics Inc. (TNYA)
Analyst TNYA Stock Forecast: Chardan Capital, Buy, $28 target
Tenaya Therapeutics is a biotech penny stock on this list with bullish expectations set by analysts. Chardan Capital is again in focus after trimming its $30 target to $28 but affirming a Buy rating last week. Despite the target cut, the $28 marker is still 833% higher than current trading levels.
The company recently began its first clinical trial of its TN-301 in treating heart failure. It received an IND clearance and commenced dosing in a single-ascending dose portion of a Phase 1 trial. Tenaya expects to report data from the trial’s single- and multiple-dose portions next year. Tenaya researchers also presented preclinical data at the American Heart Association’s 2022 Scientific Sessions.
CEO Faraz Ali explained in a November update, “With the extension of our cash runway to mid-2024, we believe we can reach meaningful milestones for our more advanced product candidates, TN-201, TN-301, and TN-401, and still continue to selectively invest in research efforts to advance our deep pipeline of earlier-stage programs.”
TN-201 is being developed for genetic hypertrophic cardiomyopathy, and expect to provide an update on an IND early next year. Meanwhile, TN-401, Tenaya’s gene therapy for Genetic Arrhythmogenic Right Ventricular Cardiomyopathy, is expected to start a global non-interventional study this year with plans for an IND application next year.
Milestone Pharmaceuticals Inc. (MIST)
Analyst MIST Stock Forecast: HC Wainwright, Buy, $25 target
Considering the MIST stock price sits around $4.56, expectations are high for Milestone Pharmaceuticals. That’s if you believe analysts at HC Wainwright as the firm has a Buy rating and target 448% higher than current trading levels.
The pharma company came under significant pressure over the last month, falling from over $9 to below $5. The drop came after the company delivered new data from its tachycardia treatment platform, etripamil. Things have turned around a bit this month after Milestone’s most recent quarterly update. In particular, CEO Joseph Olivet explained, “The positive feedback we received from both clinicians and patient advocacy groups following the presentation of further RAPID data at the American Heart Association (AHA) meeting earlier this week strengthen our conviction that etripamil has the potential to serve as a promising option for patients with paroxysmal supraventricular tachycardia (PSVT).”
Plans are now in motion to submit a new drug application to the US FDA mid-year next year. Despite the drop, analysts raised targets and maintained a buy rating at HC Wainwright. It will be interesting to see if MIST stock can live up to the bullish sentiment and expectations set heading into next year.
Superior Industries International Inc. (SUP)
Analyst SUP Stock Forecast: Barrington Research, Outperform, $19 target
Shares of SUP stock gapped up big at the end of last week. The move for the aluminum wheel supplier came after M&A headlines prompted optimism in the stock. Private equity firm M2 Capital submitted an offer to acquire Superior in a deal that would value the company’s stock at $5.85 per share. At the time, the offer was a 36% premium to the closing price on November 10th.
M2 Chairman Robert Mantse explained, “This is a highly efficient transaction that will deliver meaningful benefits to all of the stakeholders and positions the Company well for future growth,…The acquisition immediately establishes M2 Capital as a leading global supplier of aluminum wheels. This is a remarkable opportunity for Superior and M2 Capital stakeholders.”
The offer comes shortly after Superior posted a 31% increase in net sales for the third quarter to $406 million. It also significantly improved its net loss from $7 million to under $500,000. EBITDA figures also jumped by 21% to $36 million during the quarter compared to last year. Based on the latest from Barrington Research, even though it lowered its target and maintained an Outperform rating, it still resembles a level nearly 290% higher than current prices for SUP stock.
Cabaletta Bio Inc. (CABA)
Analyst CABA Stock Forecast: Chardan Capital, Buy, $12 target
If you’ve read articles on PennyStocks.com long enough, you might remember Cabaletta Bio from October when it was in another list of penny stocks to buy, according to analysts. At the time, Wells Fargo was the most recent firm to give its take on CABA stock. It maintained an Overweight rating on the company and a $4 price target. This time, Chardan Capital appears to have upped the ante (despite cutting its target). The firm maintains a Buy on the penny stock and has a $12 price target. Based on current trading levels of $2.85, that is 321% higher at the moment.
This comes as CABA stock has surged since October. Shares are up significantly in that period thanks to more substantial earnings and the outlook for its development pipeline. In Cabaletta’s most recent business update, CEO Steven Nichtberger, M.D. gave his breakdown of upcoming milestones to watch.
“Our recently announced product candidate, CABA-201, a proprietary, fully human CD19-chimeric antigen receptor (CAR) T construct containing a 4-1BB co-stimulatory domain, was purposefully designed to be similar to the 4-1BB containing CD19-CAR T construct employed in the recent Nature Medicine publication,” explaining that it “demonstrated profound clinical and serologic responses with a generally favorable clinical tolerability profile.”
Nichtberger went on to say, “We are planning to submit an IND application to the FDA in the first half of 2023, and expect initial clinical data, subject to IND clearance by the FDA, by the first half of 2024…We also continue to progress our CAART product candidate portfolio, including prioritizing the enrollment of the combination sub-study in the DesCAARTes(TM) trial for DSG3-CAART, with 1-month safety and persistence data expected in the first quarter of 2023, and continuing preparations to initiate the MusCAARTes(TM) trial for MuSK-CAART in the fourth quarter of 2022.”
EyePoint Pharmaceuticals Inc. (EYPT)
Analyst EYPT Stock Forecast: Guggenheim, Buy, $52 target
The last few penny stocks were given extremely bullish targets. But EyePoint takes the cake when it comes to the most optimistic outlook. That’s according to the latest update from Guggenheim analysts. The firm maintains a Buy rating on the penny stock. Even though it cut its $60 to $52, that is still nearly 1,000% higher than current levels (992% higher).
The company focuses (no pun intended) on therapeutics for treating eye disorders. Its pipeline uses EyePoint’s Durasert technology for intraocular drug delivery and includes its EYP-1901. The candidate is currently in Phase 2 trials. EyePoint also has four US FDA-approved products, including its YUTIQ for treating posterior segment uveitis. It also has DEXYCU, a post-op ocular steroid treatment. In its most recent quarterly update, the company said that net product revenue for YUTIQ and DEXYCU was $7.3 million and $2.4 million, respectively.
This week EyePoint presents at a few industry conferences, including Guggenheim’s Immunology and Neurology Day, as well as Stifel’s Healthcare Conference. Later this month, EyePoint will participate in fireside chats at the BTIG Ophthalmology Day on November 29th. These are just a few dates to remember if EYPT stock is on your watch list.