3 âStrong Buyâ stocks under $ 10 with triple-digit upside potential
You don’t have to pay triple digits to find great investment opportunities. It’s time to look outside the box at some cheap stocks that top analysts are applauding right now. Among the stocks that are on the rise, three have a very attractive profile for retail investors: an initial price of less than $ 10 per share, a Strong Buy rating from the streets and a triple-digit upside potential. We used the TipRanks database to mine these stocks and find out what makes them so attractive. Let’s take a closer look. RedHill Biopharma (RDHL) The first title we are reviewing, RedHill Biopharma, is a biopharmaceutical company that focuses its research efforts on gastrointestinal diseases. The company has a portfolio of active products – 6 drug candidates in clinical research and development, and three products approved in the United States or globally and currently in commercialization. The three approved drugs are Movantik, a treatment for opioid-induced constipation (a common side effect) approved for use worldwide, but excluding Europe, Canada and Israel; Talicia, a treatment for H. pylori infection (a common cause of stomach ulcers) that received FDA approval in November 2019; and Aemcolo, a treatment for “traveler’s” diarrhea, which is licensed for exclusive use in the United States. These three drugs saw prescription and market share growth in 2020, and in full year results RedHill reported sales of $ 64 million with gross profit of $ 27.5 million. of dollars. In March of this year, the company said it had $ 100 million in cash. Having plenty of cash and a profitable product line puts RedHill in a strong position to continue its development activities. The company has several new therapeutic products in development as potential treatments for COVID-19. These include Opaganib, which is currently the subject of a phase 2/3 study in hospitalized patients; RHB-107, which is also in an ongoing Phase 2/3 study, but for outpatients. The clinical pipeline also includes RHB-204, which is in a Phase 3 trial as a treatment for NTM lung disease. All of this caught the attention of analyst Raghuram Selvaraju of HC Wainwright, who titled his coverage launch report on this stock, “A Product Trifecta with a Pipeline Punch.” “From our perspective, RedHill is building the next gastroenterology-focused specialty pharmaceutical franchise in the U.S. market, while advancing a broad pipeline of rapidly maturing drug candidates across a range of fields, including oncology, respiratory ailments and infectious diseases “, Nota Selvaraju. The analyst continued, âIn our view, Movantik, Talicia and Aemcolo alone could generate peak annual sales of $ 1.1 billion by 2028. Opaganib, upamostat and RHB-204 – the only components of the RedHill’s vast pipeline that we are currently modeling – could contribute over $ 400 million in revenue in the early 2030s, with the RHB-204 having the potential to provide a long-term sustainable revenue stream beyond 2040 if pending patent claims are issued. So we believe that the total sales of the products we forecast could allow RedHill to sustain> $ 1 billion revenue base for a long time. “In line with his optimism, Selvaraju rates RDHL one purchase, with a target price of $ 23. This target suggests that the stock will change hands for a 231% premium within a year. (To look at Selvaraju’s track record, click here) Overall, based on all of the above factors, Wall Street analysts are deeply impressed with RDHL. It enjoys 100% Street support, or 4 buy notes over the past three months, making consensus a strong buy. The shares are selling for $ 6.94 each, and the average target of $ 20.50 points to a possible 195% hike by next year. (See RDHL stock market analysis on TipRanks) Freeline Therapeutics (FRLN) The next title, Freeline Therapeutics, is working on gene therapies for chronic debilitating diseases, including bleeding disorders. The company has four drugs in development, two for the treatment of hemophilia, one for Fabry disease and one for Gaucher disease. Freeline follows a proprietary experimental liver-based gene therapy approach in its research. Three of the company’s drug candidates are in clinical trials. FLT190, currently being investigated as a treatment for Fabry disease, is in a phase 1/2 dose research study, with data expected to be presented before the end of this year. FLT201 is also in a phase 1/2 dose research study for Gaucher disease. This study should be in the clinic before the end of this year. Finally, FLT180a, a drug candidate under study as a treatment for hemophilia B, is in a phase 1/2 dose confirmation study and is on track to launch trial sites for here the end of the year. Among the bulls is HC Wainwright analyst Patrick Trucchio, who is optimistic about the prospects for the company’s Gaucher program. “With limited competition, we believe the Gaucher program is Freeline’s most valuable program … Freeline presented positive data at the WORLD Symposium … We believe this data suggests that FLT201 may be able to provide a sustained GCase expression in hard to reach areas. In addition, we believe that the lessons learned from the data generated in humans to date in the FLT180a and FLT190 programs, particularly on dosing and immune suppression, could help accelerate the FLT201 program … We believe that FLT201 could generate overall revenues of over $ 8 billion. âRisk-adjusted, we estimate this program is worth $ 12 / share,â Trucchio explained. The analyst summed up: “We believe that a recent sell-off of FRLN shares … created a compelling buying opportunity ahead of the data updates on FLT180a, FLT190 and FLT201.” To this end, Driscoll rates FRLN a purchase with a target price of $ 30. If his thesis comes to fruition, a potential upside of ~ 257% could be in the cards. (To see Trucchio’s track record, click here) Trucchio isn’t the only one with a bullish outlook here; There are 6 recent reviews of this action and all of them are positive, making it a unanimous Strong Buy consensus rating. The shares are priced at $ 8.41 with an average price target of $ 24.50, which implies a 191% increase. (See FRLN stock market analysis on TipRanks) Clene (CLNN) Last but not least is Clene, a clinical-stage biopharmaceutical company pursuing a unique lead in the treatment of neurodegenerative diseases. The company uses nanotechnology to treat bioenergetic failure and the underlying factor in many neurological conditions. The company is developing bioenergetic nanocatalysts, a new class of drugs, to âjumpstartâ the neurorepair through energy-enhancing bioenergetic catalysis. In short, the company’s approach is to improve bio functions at the cellular level, so that the body can repair itself. Clene has four drug candidates in her pipeline. The main one, CNN-Au8, is described as a concentrated suspension of nanocrystalline gold (Au) that drives critical cellular bioenergetic reactions in the central nervous system. CNN-Au8 is undergoing several concurrent clinical trials, including a phase 3 trial for amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease) and phase 2 trials for multiple sclerosis (MS) and Parkinson’s. All of these diseases are progressive, chronic degenerative conditions of the neuromuscular system. CNN-Au8’s Phase 3 trial hit the 50% enrollment mark in the first quarter. Full registration is expected before the end of this year, with main data expected to be available during 1H22. Further updates on the company’s various other clinical trial programs are expected later this year. This company was floated on the stock exchange in December of last year as part of a SPAC merger transaction. The merger, with Tottenham Acquisition I Limited, brought in proceeds of $ 31.9 million and saw CLNN shares debut on NASDAQ on December 31 at $ 9.01 per share. Covering CLNN for Cantor Fitzgerald, analyst Charles Duncan set an overweight (i.e. buy) rating and a price target of $ 22 which indicates a margin of appreciation for the stock ~ 129 % of the current price of $ 9.63. (To view Duncan’s background, click here) âWe see the non-specificity of ‘Au8 as a positive factor for wide applicability to a range of diseases in which oxidative stress and metabolic dysfunction are a key driver of pathophysiology. . Additionally, although crystalline gold has long been considered to have metabolic activity, it was not until we saw the convergence of deeply scientific knowledge of nanocrystalline technology with managerial capabilities in neurobiology and drug development. , that we were compelled to consider the therapeutic potential of gold in the treatment of neurodegenerative diseases, âsaid Duncan. The analyst added, âClene has a patented technology that allows gold nanocrystals to form into specific shapes that are particularly conducive to facilitating nanocatalytic activity and filtering toxic particles from the surface of gold to lead a differentiated clinical profile, potentially opening the door to wide deployment within medicine. In a short time in public markets, CLNN has drawn 4 analyst reviews – and all are positive, making analyst consensus a strong buy. The stock has an average price target of $ 22.25, which suggests a 131% year-over-year increase from current levels. (See CLNN Stock Analysis on TipRanks) To get great ideas for stocks traded at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.