Mentioning economic opportunity, and the general benefits of wide-ranging development, President John Kennedy as soon as said, “An increasing tide lifts all boats.” As the COVID crisis fades, and financial activity starts returning to regular, we may be seeing just such a scenario.
The business revenues season, which is underway now, is clobbering expectations for the very first quarter of 2021. We’ve seen reports from 121 S&P- listed companies, therefore far incomes are up 45.3% year-over-year.
Weighing in from Oppenheimer, chief investment strategist John Stoltzfus kept in mind, “As the number of vaccines administered stateside has moved higher, organization and customer sentiment [have] broadly enhanced from the end of last year … for now the equity markets in our view show a continuing capitulation of a bearish summary of stocks and prospects for the economy that has overstayed its welcome among lots of financiers … We continue to favor equities in the present transitional environment.”
Taking Stoltzfus’s outlook into factor to consider, we wished to take a closer take a look at two cent stocks scoring rave evaluations from Oppenheimer. These tickers trading for less than $5 per share could gain over 100% in the next year, so state the firm’s experts. Utilizing TipRanks’ database, we learnt just what makes both so compelling even with the threat included with these plays.
CASI Pharmaceuticals (CASI).
The first penny stock we’re taking a look at is a pharmaceutical business with one foot in each of the world’s largest markets. CASI is based in both Beijing, China and Rockville, Maryland. The company is United States in origin, with Chinese operations conducted by an entirely owned subsidiary. CASI has one drug readily available in the business market; Evomela has applications in both cell transplant procedures and the treatment of several myeloma, and has been readily available in China considering that 2019.
In addition to Evomela, CASI has an active pipeline, including 4 drug prospects in various stages of development– from preclinical to Phase 1 or 2 trials. CASI’s pipeline focuses on hematological oncology, with drug prospects under examination as treatments for non-Hodgkin’s Leukemia, several myeloma, and AML, in addition to basic solid growth applications. CASI’s product line is created for commercialization in the Chinese medical markets.
CNTC19, CASI’s most innovative program, has actually received a Development Treatment Designation from China CDE, due to success revealed by initial information in the Stage 1 research study of safety and efficacy for the treatment of relapsed B-cell acute lymphoblastic leukemia (B-ALL). The next action, a Phase 2 study for clients with B-cell non-Hodgkin Lymphoma, is presently enrolling.
Likewise of note, CASI’s drug prospect BI-1206 revealed possible after a Phase 1/2a trial. The company thinks that the drug has prospective to restore activity of rituximab in clients with non-Hodgkin lymphoma, already treated with rituximab, who have relapsed. More trials are planned for later this year.
On the financial end, CASI reported for full-year 2020 revenue of $15 million, compared to $4.1 million in 2019. This was based mostly on sales of Evomela, and went beyond the previously released assistance of $14 million for the year. The company completed 2020 with $57.1 million in cash on hand, and in March of this year, to raise capital, put over 15.8 million shares of typical stock on the market. The stock sale earned over $32 million before expenditures.
Covering CASI for Oppenheimer, expert Leland Gershell thinks that the current funding “reinforces CASI’s position as the business continues to assess chances to more broaden its portfolio of distinguished oncology properties.”.
The expert included, “Our company believe CASI is one of a few openly traded biotech companies placed to accomplish success by targeting the burgeoning Chinese pharmaceutical market. Through a licensing-driven company model, the business continues to construct an oncology-focused portfolio of drug properties at all stages of development. Evomela is expected to grow 50%+ in 2021 and our company believe the company’s CD19 CAR-T treatment for B-cell malignancies will become the preferred alternative in China within this competitive class.”.
In line with this bullish outlook, Gershell puts an Outperform (i.e. Buy) ranking on the stock, and his $5 price target suggests an advantage of 192% for the next 12 months. (To view Gershell’s performance history, click on this link).
In general, the remainder of the Street has a positive view of CASI. The stock’s Strong Buy status comes from the 3 Buys issued over the previous 3 months. The stock is selling for $1.70 per share, and its typical price target of $4.10 suggests it has space for ~ 140% development in 2021. (See CASI stock analysis on TipRanks).
Vascular Biogenics (VBLT).
Shifting focus slightly, from China to the United States, we’ll take a look at Vascular Biogenics, a biopharma business establishing treatments for both cancer and immune/inflammatory illness.
VBLT’s leading drug candidate is VB-111, an oncology drug being examined as a treatment for numerous strong growths. This first-in-class gene treatment has applications for ovarian cancer, persistent glioblastoma, colon cancer, and thyroid cancer. In a Stage 1 trial, VB-111 was shown to be well-tolerated by over 300 cancer clients throughout those conditions. Additional effective trials consisted of Phase 2 studies that were tumor-specific for ovarian cancer, thyroid cancer, and persistent glioblastoma. The drug prospect is currently going through a Phase 3 study, OVAL, for platinum-resistant Ovarian Cancer. That research study has actually enrolled over 200 clients, and shows high response rates in over 50% of the evaluable patients.
The next most innovative candidate, VB-201, in January of this year started dosing clients in a Stage 2 research study. This randomized regulated research study will investigate VB-201 as a treatment for COVID-19.
Biopharmas require funds for ongoing research study, and Vascular Biogenetics reported ending up 2020 with $30.8 million in money, cash equivalents, and short-term bank deposits available. In a transfer to increase readily available funds, the business made a public offering of 6.9 million shares of typical stock in April. At closing, the offering had raised over $28.3 million gross capital. After deducting expenditures, the business will use the proceeds to money continuing operations.
Oppenheimer’s 5-star expert Kevin DeGeeter is bullish on VBLT, particularly with the OVAL research study proceeding “on track.”.
” Phase III OVAL study of VB-111 for treatment of platinum-resistant ovarian cancer demonstrates enhancement in ORR in 2nd interim analysis that translates into an overall survival benefit. The company’s prior financial investment in commercial-scale manufacturing allows VBLT to secure attractive partnering/takeover economics despite the relatively modest size of the innovative ovarian cancer market,” DeGeeter believed.
The analyst included, “Our separated outlook for VBLT is based in large procedure on possible to engage FDA concerning regulative filing based on PFS in 2H22 vs. primary endpoint of OS (2H23). We view 6-plus months of PFS as a successful result. Based upon a disappointing update for Mersana’s XMT-1536 in January, we now see VB-111 also placed to be potential new SOC in r/r platinum-resistant ovarian cancer clients that have likewise stopped working prior Avastin treatment.”.
To this end, DeGeeter rates VBLT an Outperform (i.e. Buy), and sets a $5 price target that suggests the stock will grow 163% from the current share price of $1.91. (To see DeGeeter’s track record, click on this link).
DeGeeter’s coworkers are likewise pounding the table on VBLT. Only Purchase scores, 4, in fact, have actually been released in the last three months, so the consensus ranking is a Strong Buy. With a typical cost target of $5– matching DeGeeter’s above– VBLT reveals room for a robust benefit in the next 12 months. (See VBLT stock analysis on TipRanks).
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Disclaimer: The opinions expressed in this post are exclusively those of the featured experts. The content is meant to be utilized for educational purposes just. It is really important to do your own analysis before making any financial investment.