These 2 Penny shares have more than a 300% uptrend on the horizon, says Oppenheimer

Earlier this month, the S&P 500 officially entered the bear market. Its current year-to-date loss is 21%, and NASDAQ, which is falling further and further, is at a 30% ytd loss. The rapid reversal not only put the bulls back in the fold, but also wiped out all of last year’s gains on the stock market, leading most analysts to start pondering the prospects for recession. Among the headwinds they are looking at are the highest inflation rates in 40 years and in response, a sharp turn by the Federal Reserve towards higher interest rates.

But at least one general claims he is not worried. Oppenheimer’s John Stoltzfus has gained a leading position among bulls and has been calling for long-term positive predictions for some time. The measure of Stoltzfus bullishness? It forecasts that the S&P 500 reached 5,330 by the end of the year. Reaching this point would mean jumping about 40% or more from current levels.

Stoltzfus describes his reasoning for the possible trajectory of the market, saying: “We do not believe that there will be a recession, we believe that we can bypass it. It is not an easy time, but we believe that this Fed is very capable of dealing with it because of the experience in dealing with the Great Financial Crisis … We are not out of the forest yet, but we believe that we are moving in the right direction and we believe that the light is on of the tunnel is not the headlight of a locomotive but rather the light of the sun. “

Oppenheimer stock analysts have taken these views and selected two stocks they see as potential winners – with potential gains that could well outperform even Stoltzfus’ predictions. These options are penny stocks, low cost stocks that can be purchased at extremely low entry costs, under $ 5 per share. At this price, even small changes – only cents – will quickly turn into large percentage changes and analysts forecast 300% or better upwards for these stocks. Using the TipRanks database, we found out what exactly makes both of them so exciting even with the risk involved in these games.

Trevi Therapeutics (TRVI)

The first stock we will look at is Trevi Therapeutics, a clinical biopharmaceutical company that conducts in-depth research trials of nalbuphine ER (under the name Haduvio) for the treatment of chronic neurological conditions. Specifically, Trevi studies the effects of Haduvio on chronic itching of the skin associated with underlying conditions such as nodular itching (PN), as well as chronic cough caused by idiopathic pulmonary fibrosis (IPF). In short, Trevi is trying to address some of the quality-of-life symptoms associated with serious, chronic illnesses that are themselves resistant to treatment.

The company’s only candidate drug, Haduvio, is described as a prolonged-release tablet form of nalbuphine, a dual-acting opioid derivative, and is a proprietary product. The clinical data for Haduvio presented in recent months have been generally positive. Trevi achieved a statistically significant efficacy result from the intermediate analysis in the Haduvio Phase 2 trial (CANAL) of IPF-related chronic cough, with patients receiving a 77.3% reduction in cough incidence compared with 25 , 7% with placebo. The next expected update will be the Haduvio Phase 2b / 3 study on severe PN-related pruritus (PRISM), which is expected in late June.

Finally, while Trevi is still pre-revenue, it has a solid cash base. The company completed a private equity placement in April this year, which generated $ 55 million in gross revenue.

With shares trading hands for $ 2.05 each, Oppenheimer analyst Leland Gershell sees an attractive entry point for investors.

“Following recent positive Phase 2 interim data, we look forward to the prospect of oral candidate Haduvio treating chronic cough associated with idiopathic pulmonary fibrosis – a particularly disabling and painful feature that lacks effective treatment. We are also excited about Haduvio prospects to treat severe chronic itching, an often reckless manifestation of a variety of conditions — including nodular itching … We believe Haduvio has $ 750 million + revenue opportunities from both opportunities in the US alone … With TRVI “With a market value of just ~ 75 million and ample cash flow following recent funding, we believe that continued growth progress with Haduvio will support stock overperformance,” Gershell said.

To that end, Gershell rates TRVI as an Outperform and sets a $ 10 target for a strong 388% uptrend over the next 12 months. (To view Gershell’s history, Click here)

Overall, with 3 Market Ratings and no Holdings or Sales assigned in the last three months, the word on the street is that TRVI is a strong market. The average price target of $ 9.33 raises the growth potential to 340%. (See TRVI stock forecast at TipRanks)

Provention Bio (PRVB)

Provention is another biopharmaceutical clinical researcher. This takes an interesting place in the treatment of autoimmune disorders, with the aim of diagnosing, conceiving and “stopping” these conditions before they develop into lifelong, chronic diseases. This necessarily involves working with pediatric patients, as many autoimmune diseases develop in infancy or early childhood. As autoimmune diseases are typically long-term and often have high unmet medical needs, the overall manageable market here is significant.

Provention has a range of active drugs, with four clinical trial programs, a preclinical program and a drug scheduled for an FDA regulatory decision next August. Overall, it is an impressive lineup, with many catalysts to look forward to in the next 18 months.

The company’s top three pieces of research include possible treatments for type 1 diabetes (T1D), the most serious form of the condition, lupus and celiac disease. Each of these, although not usually terminal, concerned long-term quality of life issues. Provention’s top-of-the-line program, teplizumab, is under investigation as a treatment for diabetes, and the company’s Biologics license application for the drug was resubmitted for approval last year. the PDUFA date is set for next August 17th.

For the other upcoming catalysts, Provention is still in the phase 3 PROTECT trial, a study of teplizumab in recently diagnosed T1D patients, and expects to publish top data in the second half of the 23rd. The PREVAIL-2 Phase 2a trial studies the candidate drug PRV-3279 as a treatment for lupus. This study started in January of this year and the company plans to publish top data in the first half of the 24th year. Finally, the Phase 2b Phase 2b dose-finding study of PRV-015, a possible treatment for celiac disease, aimed at enrolling 220 patients, is in progress. Precautionary plans to publish data before the end of next year.

According to Oppenheimer analyst Justin Kim, the possible commercialization of teplizumab will be the main event for this company. He writes, “We are evolving into three key areas that could be crucial to a successful start: patient identification, doctor receptivity and payer access. In our view, successful implementation in these areas could lead to a successful commercialization of the product in the initial targeted population of patients with T1D risk. “

“With PDUFA several months away, we believe that stocks could be approaching a turning point … Despite the difficult path taken before the upcoming PDUFA on August 17, we believe that the size of this catalyst for stocks could “It is widely focused and justifies another search for the stock, given the overall evidence supporting the risk / benefit of the drug and the likelihood that for FC reasons they have been examined by the body,” the analyst added.

Against this background, Kim’s rating for Oversight (ie Purchase) in shares is reasonable. Its price target, set at $ 16, indicates a strong 304% uptrend for one year for the stock. (To view Kim’s history, Click here)

In total, Provention has garnered 6 reviews from analysts in recent months, and these are rated 5 to 1 in favor of Buys over Holds, for a strong market consensus. The current selling price of the stock is $ 3.97 and the average price target of $ 15.40 implies an upward price of ~ 289% ahead. (See PRVB stock forecast at TipRanks)

To find great ideas for trading stocks in pennies at attractive prices, visit TipRanks’ Best Stocks to Buy, a recently released tool that brings together all of TipRanks stock information.

Denial of responsibility: The views expressed in this article are solely those of the projected analysts. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.

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