In the world of investing, penny stocks offer a unique opportunity for investors looking for undiscovered potential amidst the noise of blue-chip giants. These low-priced equities, typically priced under $5 per share, can lead to significant returns with even a small increase in absolute value. However, it’s important to note that penny stocks are known for their volatility, meaning that minor share price depreciation can result in major percentage losses.
Piper Sandler analysts are taking a chance on two specific penny stocks that they believe have the potential to jump at least 300% in the coming year. These stocks, Zura Bio (ZURA) and another unnamed company, have garnered a ‘Strong Buy’ consensus rating from the rest of the Street.
Zura Bio is a clinical-stage biopharmaceutical company that is focused on developing new drugs in the field of immunology, particularly for the treatment of autoimmune and inflammatory conditions. The company has three assets in its development pipeline, all of which have completed Phase 1 clinical trials and are ready to move on to Phase 2.
The company’s leading asset, tibulizumab, is an anti-IL-17 and anti-BAFF dual antagonist that shows promise for treating hidradenitis suppurativa and systemic sclerosis. Zura’s second asset, ZB-168, is a fully human-IgG1 monoclonal antibody targeted against the IL-7Rα pathway, while its third asset, torudokimab, is a fully human monoclonal antibody that neutralizes IL-33.
Piper Sandler analyst Yasmeed Rahimi sees great potential in Zura Bio’s assets and believes that the company is well-positioned for rapid commercialization. Rahimi rates ZURA stock as Overweight (Buy) with a price target of $26, implying a one-year upside potential of 659%. Other analysts also have a positive outlook on Zura Bio, with 4 Buy ratings in the last three months.
Overall, Zura Bio presents a compelling opportunity for investors looking to capitalize on the potential of penny stocks. It’s important to conduct thorough research and analysis before making any investment decisions.