2 “Strong Buy” Pence Stock Could Seek External Earnings
Well, it’s official. Joe Biden is now President, and will be supported by Democratic majorities in both Houses of Congress – at least in the short term. Wall Street measures the new Ministry, and sees, among its first moves, a boost in fiscal stimulus likely to drive consumer spending, beat corporate profits, and provide general economic support in the first half of 2021. Covering the situation to Goldman Sachs is investment strategist David Kostin, who is bullish on the short-term outlook for fiscal stimulus. In light of that, Kostin sets Goldman’s forecast for this year at 6.4% GDP growth; it sees continued high growth next year, and sets the 2022 prediction at 4%. These forecast numbers are up from the previously announced 5.9% and 3.7%. To this end, Kostin sees the S&P 500 reaching 4,300 by the end of the year, which would gain 12% from current levels. “Elections have consequences. Democratic control of Washington, DC after January 20 will bring more fiscal spending, faster GDP growth, more inflation, and higher interest rates than we had previously assumed, ”Kostin noted. With markets looking up, investors are looking for the stocks that are ready for returns. Pence, equity stocks at less than $ 5 a share, are a natural place to look for potential winners. Their low price means that even small incremental gains will convert into large percentages. However, before jumping right into a penny stock investment, Wall Street’s pros advise looking at the bigger picture and considering other factors beyond just the price tag. For some names that fall into this category, you really get what you pay for, with little to no long-term growth prospects thanks to weak fundamentals, recent headwinds or even large share counts not paid. Taking the risk into account, we used the TipRanks database to find compelling penny stocks with bargain price tags. The platform steered us towards two sports share price tickers under $ 5 and “Strong Buy” consensus ratings from the analyst community. It’s not to mention the significant potential upside down on the table. AzurRx BioPharma (AZRX) We will start with a company specializing in gastrointestinal disease, AzurRx. This company is focused on creating non-systemic, targeted recombination therapies for GI disorders. AzurRx has a pipeline of three drug candidates, at many levels of the development process. The key pipeline candidate, MS1819, is being investigated as a treatment for exocrine pancreatic insufficiency for patients who also suffer from cystic fibrosis. MS1819 is a recombinant lipase, derived from a yeast strain. The drug is designed to target fat molecules in the digestive tract, allowing patients to absorb the broken down fats for nutritional value. The drug is currently in Phase 2 trials, due to be completed in the first half of this year. As of January 21, the first two patients in the OPTION 2 Phase 2b extension study had received a dose with the treatment, and the Data Monitoring Committee (DMC) “remains supportive of the program.” In another important development, AzurRx announced earlier this month that it is partnering with First Wave Bio to study the oral and anal formulation of Niclosamide for the treatment of immune checkpoint inhibitor (ICI-AC)-associated colitis and COVID-related gastrointestinal infections. 19. The estimated market for Niclosamide as a treatment for COVID-related GI problems is more than $ 450 million. Based on multiple potentially significant clinical catalysts as well as its $ 0.98 share price, many members of Street believe that now is the right time to pull the trigger. Jonathan Aschoff, of Roth Capital, is bullish on AzurRx, basing his longer-term outlook on the likely success of MS1819. “We are basing our valuation for AZRX on the projected future US sales of MS1819 for EPI treatment for CF and CP, using an initial annual price of approximately $ 18,000, consistent with the PERTs at currently available. We are projecting MS1819 to be commercialized in the US in 2023, generating sales of $ 272 million in 2030. Pre-US commercial success for MS1819, or commercial success of the early-stage beta-lactamase program would provide a face to face down with our valuation, ”noted Aschoff. The analyst also looks forward to the initial clinical results of Niclosamide in COVID-19 GI infection and possibly ICI-AC, stating: “Niclosamide was approved by FDA in 1982 to treat intestinal worm infections and is on the Institute of Health list The World of Essential Medicines. Given the millions of patients who have taken the drug, the safety profile is largely established, thereby reducing developmental risk. “Given all of the above, Aschoff rates AZRX as a Buy, and its $ 7 price target suggests a sky-high 608% upside for the coming year. (To view Aschoff’s history, click here) Overall, the analyst’s consensus on AZRX shares is Strong Buy; the stock has 4 recent reviews, including 3 Buy and one Hold. In addition, the $ 4 average price target brings the potential upside to 304%. (See AZRX stock analysis on TipRanks) ProQR (PRQR) ProQR is a biotechnology company focusing on treatments for congenital progressive blindness. In particular, the company is working on medicines to reverse a group of genetic sight disorders called hereditary retinal diseases. These diseases do not currently have effective treatments. The company has a research pipeline of five drug candidates, at various stages of the research process. The two furthest forward are QR-110 (Sepofarsen), and QR-421. Of those two, QR-110 is currently in Phase 2/3 studies. This candidate is an RNA therapy designed to correct the m ost common CEP290 gene mutation causing congenital amaurosis Leber 10 (LCA10). This is a serious genetic retinal disease that affects as many as 3 in 100,000 children. QR-421 is another RNA therapy, this one focused on exon 13 mutations in the USH2A gene. These mutations cause blindness due to retinitis pigmentosa and / or Usher syndrome. QR-421 is in Phase 1/2 studies, aimed at restoring lost vision or preventing loss in the first place. Covering the stock for JMP, analyst Jonathan Wolleben points to Sepofarsen as a key component of his bullish thesis. “We continue to feel good about sepofarsen’s chances of success at Illuminate for several reasons: 1) Phase 1/2 confirmed the target registration dose and dosing interval (6 months); 2) patients received clinically significant and durable BCVA improvements after 12 months – a central baseline end point; 3) supportive secondary efficacy measures (FST, mobility); 4) similar responses seen in second treated eyes; 5) long-term security affirms positive risk / benefit; and 6) Enlightened patient population enriched based on Phase 1/2 results (baseline of> / = hand motion). We assign 60% POS to sepofarsen and model LCA10 as a ~ $ 300M opportunity for PRQR at peak penetration, “Wolleben opted. In line with its ambitious forecasts, Wolleben puts a $ 20 price target on the stock, suggesting upside target of 384%, plus Outperform (ie Buy) rating. (To view Wolleben’s history, click here) Overall, PRQR receives a unanimous Strong Buy rating from the analyst consensus, based on 3 positive stock reviews Shares are currently trading at $ 4.13, and their $ 20.67 average price target is slightly more bullish than Wolleben, suggesting a 400% upside for the next 12 months. (See analysis PRQR stock at TipRanks) To find good ideas for penny stocks trading at attractive valuations, visit TipRanks’ The Best Stocks to Buy, a newly launched tool that unites all TipRanks equity insights. Disclaimer: The views expressed in the article are solely those of the analysts concerned this. The content is intended for informational use only. It’s very impo. rtant to do your own analysis before making any investment.