2 penny stocks with strong buying that could be booming
Penny stocks are arguably the most controversial on the street and a hot button issue. Usually there isn’t much middle ground when it comes to these tickers, which sell for less than $ 5 apiece. Both sides divide the market watchers into two different groups and provide valid arguments in which the advantages and disadvantages are presented. Sure, there is reason enough to be skeptical. Often times, a cheap stock is cheap for a reason, with the low stock price possibly reflecting an underlying problem in the business, be it poor fundamentals or unbeatable headwinds. A bargain price doesn’t always indicate a lost cause, however. For some, better days are ahead, and for very little money, investors can control many more stocks. Even slight upward movements could therefore lead to massive percentage increases and thus to substantial returns. Because the nature of these investments makes it difficult to gauge the strength of their long-term growth prospects, an effective stock picking strategy is to follow analyst advice. Using TipRanks’ database, we settled on two penny stocks that received glowing reviews from the street, enough to earn a consensus rating of “Strong Buy”. Not to mention that each has huge upside potential. Savara, Inc. (SVRA) We’re starting Savara, a biotech company focused on lung diseases in orphans. Savara’s primary focus is on autoimmune pulmonary alveolar proteinosis (aPAP), a rare condition in which protein material builds up in the lungs and prevents effective breathing. Current treatment includes admitting a patient to the intensive care unit, using general anesthesia, and literally “washing out” the lungs – an invasive and difficult procedure. Savara is researching medical alternatives. The company’s lead drug candidate, Molgradex, is an inhalant developed as a granulocyte-macrophage colony-stimulating factor. In short, it targets the autoimmune defect that prevents the body from naturally cleaning the lungs. Molgradex has an orphan drug designation from the FDA and has completed its Phase 3 IMPALA clinical trial with some mixed results. It missed the primary endpoint but met an important secondary endpoint, and the company announced in December that it intended to meet with regulators to discuss additional studies. These discussions resulted in an open-label follow-up, a study that focused on the long-term safety of using Molgradex in patients with aPAP. The study followed 128 patients for periods between 48 and 72 weeks and showed improvements in two independent measurements of gas exchange in the lungs. In light of these positive results, Molgradex is starting the IMPALA 2 study, an additional phase 3 clinical study that is scheduled to begin in the second quarter of 21. Some members of the Street believe that Savara’s stock price is an attractive entry point right now. Among the cops is Piper Sandler analyst Yasmeen Rahimi, who believes SVRA is an “ideal choice”. “We believe Molgradex has the potential to be a breakthrough therapeutic for autoimmune pulmonary alveolar proteinosis (aPAP). With a convincing MOA behind us, we are firmly convinced in a phase 3 study that Molgradex is clinical POS (IMPALA 2), which we believe will match its existing data set in the 24-week double-blind phase 2b / 3 IMPALA 1 Study in 138 aPAP Patients Who Demonstrated Favorable Safety … So we strongly believe that SVRA stocks do the potential for a comeback in evaluating Molgradex in IMPALA 2, which is expected in the second quarter of 21 will begin, “said Rahimi.” Important, “added the analyst,” Molgradex has already received Orphan Drug Designation (with entitlement for seven) years of exclusivity) and EU (potential for 10 years of exclusivity) as well as FDA Fast Track Designation and FDA Breakthrough Therapy Designation in the US, to build the validation for Molgradex in aPAP. To that end, Rahimi rates SVRA when setting obese (i.e. buy) a $ 7 price target. That target suggests stocks could rise 309% over the next year. (To see Rahimi’s track record, click here) Overall SVRA has 3 recent analyst ratings and all are buys, which makes the analyst consensus rating a strong buy, with average target price of $ 4.67, suggesting the stock has room for 173% 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 fully approved and in the marketplace. Aquestive uses for its drugs a unique film-based delivery mechanism, it has adapted the film delivery system to be dosed through multiple sites in the mouth sst, including inside the cheek, under the tongue, and on the tongue. The most important news from this company in the past few months has been the FDA’s rejection of the New Drug Application (NDA) for the buccal film Libervant. This drug is a formulation of diazepam, a well-known sedative that is often used to treat seizures. Libervant, dosed through a buccal film (inside the cheek), was developed to treat clusters of seizures. In response to the NDA, the FDA sent Aquestive a Complete Response Letter (CRL) describing problems with the drug. In particular, the CRL cited lower drug exposure levels in patients in certain weight groups. However, no other safety or clinical issues were cited. Following a meeting with the FDA, Aquestive has revised the weight-based dosage regimen and is preparing a new NDA for Libervant. The company does not believe any further clinical trials are needed and expects the NDA filing to be completed in Q221. Once the application is submitted, the company anticipates a six month review process. Analyst Jason Butler points out in his coverage of this stock for JMP Securities that the main driver here is the Libervant NDA resubmission. “[The] The company recently gained clarity from the FDA on the acceptance of the company’s revised proposed weight-based dosing regimen combined with new modeling and simulations at a Type A meeting in October 2020 and the company’s subsequent filing of the proposed dosing regimen and modeling in December . In recent weeks, the agency has asked for formatting changes for the security area of the resubmission and requested the company to demonstrate the predictive nature of the PK model in comparison to the data observed from the cross-over study. We see these activities as easily feasible … “noted Butler. Butler summarized,” We remain confident about the regulatory pathway for Libervant and expect approval this year, while maintaining our 85% chance of approval. “We look forward to a successful follow-up. Butler outperformed Aquestive’s shares (ie Buy) and his target price of $ 17 implies an upward movement of 315% over the next 12 months. (To see Butler’s track record, click Here.) Turning to the rest of the street on the same page, with 100% street support, or 5 buy reviews to be precise, the message is clear: AQST is a strong buy. Average price target of $ 15 brings the upside potential to ~ 266%. (See AQST stock analysis on TipRanks) To find good ideas for trading penny stocks at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that has all the insights into the stocks United by TipRanks. Disclaimer: The opinions expressed in this article are those of the featured analysts only. The content is for informational purposes only. It is very w It is important that you do your own analysis before making an investment.