Penny Stocks With Bullish Bets From Analysts
One of the ways traders find penny stocks to buy is through trends. Some of these trends center around what others say about particular stocks. We saw this trend take hold as retail traders banded together behind beaten-down stocks like AMC Entertainment, GameStop, and others over the last few years. This has brought the rise of “social sentiment scanners” to see what the masses are looking at. Another area of chatter that the market continues paying attention to is the analyst community.
While they aren’t the end-all of your research, these Wall Street firms make a point to look deeper into companies than just observing current trends. They’ll look for upcoming or future plans for executing business models or product pipelines. Remember, just because an analyst may be bullish on a stock doesn’t mean they’re correct in their expectation.
However, at the very least, their reports can be utilized to distill some of their research and use it as a piece of analysis to arrive at your own conclusion. Today we look at a handful of penny stocks to buy, according to analysts. We discuss recent events, give you the analyst take, and then you can determine if they deserve a place on your watch list in 2023.
Penny Stocks To Buy [according to analysts]
Apexigen Inc. (APGN)
Even with the stock market down, penny stocks – biotechnology companies specifically – have been outperforming daily. Apexigen is one of many examples of biotech stocks rallying amid bearish pressure in the overall markets. This year, the company has already managed to bounce by more than 100% thanks to a string of bullish analysts, speculative momentum, and an upbeat outlook from the company.
This week Apexigen announced new Phase 2 data from its study evaluating sotigalimab. It’s the company’s cancer treatment candidate. The company said that the platform showed an ability to “turn immunologically “cold” tumors “hot” to increase anti-tumor immune responses for increased therapeutic effect in patients with esophageal/gastro-esophageal junction and rectal cancers.”
Apexigen presents this data in two poster presentations this week at the ASCO Gastrointestinal Cancers Symposium. As this clinical program advances, Apexigen management expects to provide more updates.
APGN Stock Forecast
Analysts appear bullish based on recent ratings. EF Hutton initiated coverage on the biotechnology company this month. The firm set a Buy rating and announced an $8 target. Based on recent closing prices of $1.79, that is roughly 347% higher.
Aligos Therapeutics Inc. (ALGS)
Another shining example of a biotech company that has managed to rally in 2023 while the S&P and Nasdaq chop around is Aligos Therapeutics. The company focuses on therapies for viral and liver diseases with a pipeline of antivirals for potential treatments for hepatitis and coronaviruses. It’s also leveraging its platform to apply it to liver diseases, including nonalcoholic steatohepatitis or NASH.
This year started on a high note, with Aligos announcing that it was on track to finish a Phase 2-enabling process this year for its thyroid hormone receptor beta (THR-ß) drug candidate for NASH, ALG-055009.
The final cohort of the Phase 1 study is anticipated to come to completion during the year’s first half, while the Phase 2 enabling GLP toxicology studies are expected during the back half of 2023. Further, after giving a clinical update on its pipeline programs at the 2023 JP Morgan Healthcare Conference, ALGS stock strengthened during the beginning of January.
ALGS Stock Forecast
Following these headlines and presentations, analysts have started to make moves in their forecasts. Jefferies upgraded the company to a Buy from its former Hold rating. It also boosted its $2.50 target to $3. Additionally, analysts at Piper Sandler maintained their Overweight rating on Aligos while more than doubling their previous $3 target to $7. Based on recent closing levels, that target is 231% higher.
Pagaya Technologies Ltd. (PGY)
The last two months were very active for Pagaya Technologies. December, in particular, saw some of the fourth quarter’s highest daily average trading volumes. The initial move came in tandem with the company’s participation in a series of investor conferences and filings that came out showing a slew of Schedule 13Ds for beneficial ownership of the company.
This month, the AI-centric fintech infrastructure company was in the headlines, which seems to have helped boost sentiment in the market. Pagaya announced the acquisition of Darwin Homes, which focuses on property technology for rental properties. CEO Gal Krubiner explained the deal as one that “positions us as one of the most tech-forward real estate platforms in the industry, further proving the crossover applicability of our AI.”
PGY Stock Forecast
What do analysts think about PGY stock? UBS recently initiated coverage of the company. The firm has a Neutral rating and a $1.25 target. This latest rating is in stark contrast to analysts who weighed in on PGY stock during the second half of 2022, including Moffett Nathanson. Analyst Eugene Simuni initiated coverage on Pagaya with a Market Perform rating and a price target of $12.00. However, when that forecast was made, PGY stock was trading much higher.
Taboola. com Ltd. (TBLA)
Shares of online advertising company Taboola have surged since late last quarter. The company initially announced a significant deal with Yahoo to power the native advertising exclusively across Yahoo’s properties. While this may have been a highlight on its own, the agreement also came with a 30-year tandl as a representative of Yahoo to join Taboola’s board.
Taboola also inked a deal with Time Out, a media and hospitality business, to implement its platform across all Time Out web properties, globally. “Time Out is a great brand with a global team of local expert journalists, trusted by millions of people around the world when they go out,” said Adam Singolda, CEO and founder of Taboola. “We are excited to work with Time Out and use our technology to support their future audience growth and commitment to innovate.”
TBLA Stock Forecast
The most recent activity has Needham analysts adjusting their price target from $2.50 to $3.50 while maintaining a Buy rating. Other firms, including JMP Securities, have their TBLA stock forecast price target set at $6 and with a Market Outperform rating.