These 2 ‘Strong Buy’ Penny Stocks Could Jump at Least 300%, Says Piper Sandler

Amidst the noise of blue-chip giants, penny stocks quietly beckon investors with the allure of undiscovered potential. For those willing to dive deep into the market’s undercurrents, these low-priced equities promise a treasure trove of opportunity.

The ‘pennies’ are stocks priced under $5 per share, and simple arithmetic tells us that even a small gain in absolute value will quickly turn right into a high-percentage return.

What’s the flip side? Minor share price depreciation can fuel major percentage losses. By nature of those massive movements, penny stocks are notoriously volatile.

The analysts at Piper Sandler are willing to shoulder this risk – and so they are recommending two pennies specifically for enormous gain. In response to the analysts, these two stocks could jump not less than 300% in the approaching yr.

In response to the TipRanks database, each have also been cheered by the remaining of the Street, as they boast a ‘Strong Buy’ consensus rating. Let’s take a better look.

Zura Bio (ZURA)

We’ll start with a clinical-stage biopharmaceutical company, Zura Bio. This company is specializing in the creation of latest drugs in the sector of immunology, specifically within the treatment of autoimmune and inflammatory conditions. Zura is following a dual-pathway approach, to satisfy patients’ therapeutic needs and supply a tangible improvement to their well-being. To this end, the corporate has three assets in the event pipeline, all of which have accomplished Phase 1 clinical trials and are considered able to advance to Phase 2.

The corporate’s leading asset is tibulizumab, an anti-IL-17 and anti-BAFF dual antagonist that’s potentially first in its class for the treatment of each hidradenitis suppurativa (HS) and systemic sclerosis (SSc). The primary of those conditions is an inflammatory follicular skin disease and is estimated to affect between 300,000 and 400,000 patients within the US. The second condition is an autoimmune disease causing tissue inflammation and fibrosis and is potentially fatal. Tibulizumab showed promise in early testing and is currently scheduled to initiate a Phase 2 study within the treatment of SSc during 4Q24, in addition to a Phase 2 study in HS during 2Q25.

The corporate’s second asset is ZB-168, described as a ‘fully human-IgG1 monoclonal antibody targeted against the IL-7Rα,’ a pathway that plays a crucial role in the event, functioning, and homeostasis of immune system T cells. Zura believes that ZB-168 offers promise as a therapeutic alternative for autoimmune diseases that involve the IL-7 or TSLP signaling paths.

Finally, Zura is working with torudokimab, its third drug candidate. This drug is one other monoclonal antibody, described as fully human and high affinity. Torudokimab’s motion is described by the corporate as neutralizing IL-33, stopping ST2-dependent and ST2-independent (e.g., RAGE) inflammation.

Based on the potential of Zura’s solid set of assets, and its $3.43 share price, Piper Sandler analyst Yasmeed Rahimi thinks that now could be the time to get in on the motion.

“Zura Bio is a clinical stage biotech company that’s thoughtfully developing a pipeline of best-in-class antibodies that act across dual pathways for the treatment of diseases across inflammation and immunology with high unmet need… ZURA has 3 differentiated assets in Ph2 development across 4 indications, where we indicate that each one of those compounds have been in-licensed from leading large pharma corporations comparable to Eli Lily and Pfizer, substantially de-risking these assets and positioning ZURA for rapid commercialization in our view,” Rahimi noted.

“Considering the multitude of upcoming catalysts with 9 in IL-17/BAFF, 14 in IL-7 and TSLP, and 5 in IL-33, we imagine these catalysts will drive significant share gains as they validate the potential for pipeline expansion opportunities, opening the door for a ‘pipeline-in-a-product’ and unlocking further sequential value across each of ZURA’s assets,” Rahimi added.

To this end, Rahimi rates ZURA stock an Chubby (i.e. Buy), and her price goal of $26 implies a strong one-year upside potential of 659%. (To look at Rahimi’s track record, click here)

Are other analysts in agreement? They’re. 4 Buys and no Holds or Sells have been issued within the last three months. So, the message is evident: ZURA is a Strong Buy. Given the $21.33 average price goal, shares could soar ~523% from current levels. (See ZURA stock forecast)

Monte Rosa Therapeutics (GLUE)

The second penny stock on the list of Piper Sandler picks is Monte Rosa, one other biopharmaceutical company. Monte Rosa is working with protein degradation to develop recent treatment approaches for a wide range of disease conditions. The corporate got here to this approach through the conclusion that many human disease conditions are caused or exacerbated by abnormal intracellular protein function, specifically, irregularities in protein degradation, the method by which old, nonfunctioning, or irregular proteins are broken down and cleared from healthy cells and tissues.

Monte Rosa uses molecular glue degraders (MGDs) to induce protein-protein interactions, and to enable the elimination of targeted proteins. The corporate believes that this approach may open up recent treatment options, by the elimination of therapeutically relevant proteins which have resisted treatment by the present panoply of small molecule drugs in the marketplace.

For now, Monte Rosa is working with MGDs that promote degradation of targeted proteins by facilitating interactions between those targeted proteins and a ubiquitin ligase. The MGDs bind to the ubiquitin ligases, and create recent surfaces on the targeted proteins. These surfaces are complementary to the therapeutically relevant targets, and permit promotion of protein degradation. The corporate uses its QuEEN platform, a proprietary technology, to rationally design, develop, and deploy the MGDs.

The leading drug candidate, created on the QuEEN platform, is MRT-2359. This MGD is ‘potent, selective, and orally bioavailable,’ and is designed to advertise targeted degradation of the GSPT1 protein, through induction of interactions between cereblon (CRBN), a component of the E3 ubiquitin ligase and the interpretation termination factor GSPT1. This drug candidate is advancing in an ongoing Phase 1/2 clinical trial, and data from the Phase 1 segment is predicted for release during 2H24.

This company’s novel approach and early success with its QuEEN platform have caught the attention of Piper Sandler analyst Edward Tenthoff.

“While computational approaches are common in protein degradation, QuEEN is sophisticated and comprehensive, enabling the corporate to rationally design MGDs… Importantly, QuEEN is now rapidly yielding MGDs against therapeutically relevant targets. We expect Monte Rosa to create shareholder value by reporting clinical data on MRT-2359, and by advancing and expanding its early MGD pipeline, and potentially signing additional partnerships… We see the chance for Monte Rosa to shut the valuation gap with other TPD plays Arvinas and Kymera…”

In Tenthoff’s view, GLUE shares deserve an Chubby (i.e. Buy) rating, and his $16 price goal on the stock suggests that a 12-month gain of 315% lies ahead. (To look at Tenthoff’s track record, click here)

Do other analysts agree? They do. Only Buy rankings, 5, the truth is, have been issued within the last three months, so the consensus rating is a Strong Buy. The shares are trading for $3.86 and their $16.25 average goal price indicates room for a 321% increase from that level. (See GLUE stock forecast)

To seek out good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this text are solely those of the featured analysts. The content is meant for use for informational purposes only. It is vitally vital to do your personal evaluation before making any investment.

Leave a Comment

Copyright © 2024. All Rights Reserved. Finapress | Flytonic Theme by Flytonic.