In this article, I’ll discuss a few penny stocks analysts have rated a buy. We’ll also discuss price targets issued and what recent events could be important if these are on your watch list right now. Keep in mind that analyst ratings aren’t the end-all, be-all. While they may serve as some importance, many times these ratings can either be outdated or irrelevant to the current market trends.
The fact that analysts don’t constantly update their ratings should be something you keep in mind. If you’re using analyst opinions see when the rating was made. Observe what was happening in the company at the time and if those “things” are still relevant today.
Just one example is that you might come across penny stocks with bullish ratings, sure. However, if that rating or price target was issued 3 years ago, how accurate can it be? What’s more, we’re talking about penny stocks here. Whether you like it or not, many companies will effect reverse stock splits to uphold certain price requirements of the exchanges.
If a stock was trading a $1 at the time a $2 price target was given, for example, but the company then does a reverse split and the price adjusts to $5, the stock isn’t magically “undervalued”. It just has an outdated target. Keep this in mind when doing research. Don’t just view a section on “analyst ratings” and assume they’re “recent”. Check places like PennyStocks.com for current analyst forecasts.
Keeping this in mind, here are a few penny stocks to buy according to H.C. Wainwright & Northland Securities. These firms have also issued very bullish price targets within the last 8 months. But just because this might be the case, it’s up to you to decide if they truly are penny stocks to buy or avoid entirely.Penny Stocks To Buy [According To Analysts]
- Matinas Biopharma Holdings (MTNB Stock Report)
- Abeona Therapeutics Inc. (ABEO Stock Report)
- Acasti Pharma (ACST Stock Report)
- PolarityTE Inc. (PTE Stock Report)
H.C. Wainwright is one of the more popular analysts that cover penny stocks. The firm has followed countless companies and you’ll also find the name among headlines related to fundraising, for instance. In this case, H.C. has put Buy ratings on 3 of the penny stocks on this list.Matinas Biopharma Holdings
Matinas has been on a wild ride over the last few months. Shares popped and dropped between September and early November. Then, a new surge of momentum kicked in. This has taken the stock from just $0.73 to highs of $1.81 so far this week. If you’ve been following our coverage of Matinas during the last month, you’ll remember back in November we discussed certain highlights. Its lead product candidate, MAT9001, its prescription drug that could be utilized in the treatment of hypertriglyceridemia.
Fast-forward to this week and MAT9001 is what has grabbed even more attention in the stock market today. The FDA conditionally accepted LYPDISO™ as the proposed brand name for MAT9001. Furthermore, Matinas also announced that the United States Patent and Trademark Office issued a Notice of Allowance, approving its application to register the LYPDISO brand name as a federal trademark.
“We eagerly await topline data from our ENHANCE-IT head-to-head study vs. Vascepa® in the first quarter of 2021, followed by the commencement of our Phase 3 program for LYPDISO in the second half of 2021.”Jerome D. Jabbour, Chief Executive Officer of Matinas
In light of the pending topline data along with favorable interest from analysts, MTNB could remain one of the penny stocks to watch right now. H.C. Wainwright currently has a Buy rating and $4 price target on the stock. That puts its MTNB stock price forecast roughly 138% higher than current levels.Abeona Therapeutics Inc.
Shares of ABEO stock have steadily climbed over the last 2 months. In fact, since November 4th, the penny stock made a move of more than 60% to date. If we look at H.C. Wainwright’s latest rating from late-November, the firm actually cut its price target to $8 from $11. However, it maintained a Buy rating on the company. Despite this as the case, the firm’s ABEO stock price forecast is still 382% higher than current trading levels to start the year.
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Considering that gene treatment and gene editing stocks received attention at the end of 2020, it makes sense as to why Abeona might’ve gained ground recently. The company looks to advance its gene therapy treatments. Michael Amoroso, Chief Operating Officer of Abeona said in a recent business update, “In particular, we are continuing to propel our clinical programs in recessive dystrophic epidermolysis bullosa (RDEB) and Sanfilippo syndrome type A (MPS IIIA) and type B (MPS IIIB) to drive Abeona’s long-term growth and unlock shareholder value.”
Furthermore, abstracts recently detailed new interim results from its ABO-102 Phase 1/2 Transpher A study for MPS IIIA and ABO-101 Phase 1/2 Transpher B study for MPS IIIB. These were accepted for platform oral presentations during the late-breaking abstract session at the upcoming WORLDSymposium™ being held February 8-12. In consideration of this, against the backdrop of prior milestones, will ABEO hit your list of penny stocks to watch heading into Q1?Acasti Pharma
Right now ASRT stock is trading below 50 cents a share. We’ve watched this company attempt to recover for a few months now after dropping hard in September. At that time, Acasti had reported Phase 3 data of its CaPre treatment for hypertriglyceridemia. Long-story-short, the company decided not to push forward with filing a New Drug Application with the FDA. However, in light of the bad data, something positive may have come out of the direction the company seems to be headed in.
Acasti is currently “exploring and evaluating a range of strategic alternatives” and engaged Oppenheimer & Co to help. The main reason was to undertake a strategic review of the company with the purpose of exploring strategic alternatives to drive shareholder value. This includes potential mergers, acquisitions, or other initiatives that involve Acasti and/or its product. In its current pipeline are products including CaPre.
Volume has definitely been building over the last few weeks. Furthermore, ACST stock has managed to climb over 120% over the last 2 months. While the future may not be entirely clear, analysts remain bullish on the stock. This includes H.C. Wainwright, which has a Buy rating and price target of $3. This puts the firm’s ACST stock price forecast over 650% higher than the current trading levels. Whether or not it actually reaches those levels is yet to be seen.Penny Stocks To Buy [according to Northland Securities]
Northland Securities is another one of the market analysts following small-cap penny stocks. It also holds certain names in a bullish light. This includes Polarityte Inc.PolarityTE Inc.
The company has been working to regain the trust of traders over the last few weeks. Shares of PolarityTE stock dropped hard at the end of November. This is when the company elected to reduce the exercise price of warrants from $2.80 to just 10 cents. Aside from that, the company has been focused on advancing its regenerative tissue product pipeline. In addition to receiving an allowance for its first U.S. patent, PolarityTE also managed to raise a few million dollars to put toward working capital.
This last event has become the last straw for some of the company’s largest shareholders. Specifically, Gatemore Capital (holders of over 5% of the company) sent a letter to the company demanding it reconsider its fundraising activities. In particular, the firm pointed out that, there is still “immense potential of SkinTE and the intrinsic value of the Company’s intellectual property.” Ultimately, Gatemore aims to push the company toward restructuring its leadership and board & form a strategic alternatives committee.
PolarityTE hasn’t fired back (yet) but it is important to note that there are significant investors in the company that want to see it succeed. Furthermore, analysts have remained bullish on the company. Cantor Fitzgerald is the most recent firm to weigh in with an “Overweight” rating. However, Northland Securities is the one with price target. The firm has $3 as the PTE stock price forecast. That’s over 300% higher than current trading levels.