TipRanks2 “Strong Buy” Penny Stocks That Could Explode Arguably the most controversial on the street, penny stocks are a hot issue. Usually, there isn’t much middle ground when it comes to these tickers under $ 5 each. By dividing market watchers into two distinct groups, both sides present valid arguments outlining the pros and cons. Of course, there are enough reasons to be skeptical. Often a cheap stock is cheap for a reason, with the low stock price potentially reflecting an underlying problem with the company, whether it’s poor fundamentals or unbeatable headwinds. That said, a great price isn’t always a sign of a lost cause. For some, better days are on the horizon, and for very little money, investors can control a lot more stocks. Therefore, even minor bullish moves could result in massive percentage gains, and therefore significant returns. Given the nature of these investments, it is difficult to assess the strength of their long-term growth prospects, an effective stock selection strategy is to follow the advice of analysts. Using TipRanks’ database, we stuck on two penny stocks that garnered rave reviews from the street, enough to earn a “Strong Buy” consensus rating. Not to mention that each offers enormous upside potential. Savara, Inc. (SVRA) We’ll start with Savara, a biotechnology company specializing in orphan lung disease. The main focus of Savara is autoimmune pulmonary alveolar proteinosis (aPAP), a rare disease in which protein material builds up in the lungs and prevents efficient breathing. Current treatment involves admission of the patient to intensive care, complete anesthesia, and literal “lavage” of the lungs – an invasive and difficult procedure. Savara is looking for medical alternatives. The Company’s primary drug candidate, molgradex, is an inhalation drug designed as a colony stimulating factor for granulocytes and macrophages; in short, it is targeted at the autoimmune loophole that prevents the body’s natural self-cleaning of the lungs. Molgradex has an orphan drug designation from the FDA and has completed its Phase 3 IMPALA clinical study, with mixed results. It missed the primary endpoint, but met a key secondary endpoint, and the company said in December that it planned to meet with regulators to discuss further studies. These discussions led to an open-label follow-up study focused on the long-term safety of molgradex use in patients with aPAP. The study followed 128 patients for periods ranging from 48 to 72 weeks and showed improvements on two independent measures of gas exchange in the lungs. Based on these positive results, the company is launching molgradex in the IMPALA 2 study, an additional Phase 3 clinical trial, which will begin in 2Q21. Currently at $ 1.71 apiece, some street members believe Savara’s share price reflects an attractive entry point. Among the bulls is Piper Sandler analyst Yasmeen Rahimi, who believes SVRA is an “ideal value pick”. “We believe Molgradex has the potential to be a breakthrough therapy for autoimmune pulmonary alveolar proteinosis (aPAP) … With a compelling MOA on its back, we have a strong belief in clinical POS for Molgradex in a study. phase 3 (IMPALA 2), which we believe may improve its existing data set in the 24-week, double-blind Phase 2b / 3 IMPALA 1 study in 138 aPAP patients who showed favorable safety … Therefore, we have a strong belief that SVRA stocks have the potential to make a valuation comeback with Molgradex in IMPALA 2, which is expected to start in 2Q21, “Rahimi said.” It is important to note, “added the analyst,” Molgradex has already received orphan drug designation in the US (with eligibility for seven years of exclusivity) and EU (potential for 10 years of exclusivity) as well. as the FDA Fast Track designation and the FDA Breakthrough Therapy designation, further validating Molgradex in aPAP. To that end, Rahimi attributes SVRA to being overweight (i.e., a price target of $ 7. This target suggests that stocks could climb 309% next year. (To look at Rahimi’s track record) , click here) Overall, SVRA has 3 recent analyst reviews, and all of them are buy, making the analyst consensus rating a strong buy. The average price target stands at 4.67 $, which suggests the stock has a 173% margin upside over the next 12 months. (See SVRA stock analysis on TipRanks) Aquestive Therapeutics (AQST) Next, Aquestive Therapeutics, is a diversified biotech company with a range of products at all stages of the development pipeline, from preclinical to full approval and to market. Aquestive uses a unique film-based delivery mechanism for its drugs. It has tailored the system film dispenser for dosing through multiple locations in the b ouche, including on the inside of the cheek, under the tongue and on the tongue. The major news from this company in recent months has been the FDA’s rejection of the New Drug Application (NDA) of the Libervant oral film. This medication is a formulation of diazepam, a well-known tranquilizer frequently used to treat seizures. Libervant, dosed through an oral film (inside the cheek), was designed to treat epileptic clusters. In response to the NDA, the FDA sent Aquestive a Full Response Letter (CRL) outlining the issues with the drug. The LCR specifically cited lower drug exposure levels in patients of certain weight groups. However, no other safety or clinical concerns were cited. After meeting with the FDA, Aquestive revised the dosage regimen based on weight and is preparing a new NDA for Libervant. The company does not believe further clinical studies are necessary and plans to complete NDA submission to 2Q21. Once the request is submitted, the company plans a six-month review process. Analyst Jason Butler, in his coverage of this action for JMP Securities, points out that the main driver here is the Libervant NDA’s new submission. “[The] The company recently obtained clarification from the FDA on the acceptability of the proposed revised dosage regimen based on weight, in combination with new modeling and simulations, at a Type A meeting in October 2020 and subsequent submission by the company planned dosing regimen and modeling in December. In recent weeks, the agency has requested format changes for the security section of the new submission and for the company to show the predictive nature of the PK model against the observed data from the cross-study. We see these activities as easily achievable … “, noted Butler. Butler summed up:” We remain confident in the regulatory path of Libervant and anticipate approval this year, maintaining our 85% probability of approval. “Pending a successful resubmission, Butler attributes Aquestive shares outperformance (i.e. a buy), and his price target of $ 17 implies a 315% hike over the years. Next 12 months (to watch Butler’s history, click here) As for the rest of the street now, other analysts are on the same page. With 100% Street support, or 5 reviews To be exact, the message is clear: AQST is a strong buy. The average price target of $ 15 brings the upside potential to ~ 266%. (See AQST stock analysis on TipRanks) great ideas for trading penny stocks at attractive valuations, check out the best stocks to buy from TipRanks, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: Opinions expressed in this article are only those from featured analysts. The content is intended to be be used for information purposes only. It is very important to do your own analysis before making any investment.
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