‘Audentes Fortuna iuvat,’ wrote Virgil in his classic epic, the Aeneid. The saying, translated as ‘Fortune favors the bold,’ means that Fortuna, the Goddess of luck, is more likely to help those who take risks or action.
The stock market gives us one of the clearest examples of this principle with penny stocks. These low-cost shares, listed at $5 or less, present a rock-bottom entry point, making them true gold for the risk-tolerant investor.
The appeal is clear. For the same price as one share of a more well-known company, investors can snap up hundreds of shares of a penny stock. What’s more, the fact that even minor share price appreciation can translate to hefty percentage gains is too enticing for some investors to ignore.
Although penny stocks can deliver massive returns, there could be a reason they are changing hands at such low levels. Finding themselves in challenging times, these names could be bogged down by overwhelming headwinds or poor fundamentals.
So, how should investors approach a potential penny stock investment? By taking a cue from the analyst community. These experts bring in-depth knowledge of the industries they cover and substantial experience to the table.
Bearing this in mind, we used TipRanks’ database to pinpoint two penny stocks getting rave reviews from Piper Sandler, with the firm’s analysts forecasting a potential rally of over 300%, setting a target price of $9 for each. Adding to the good news, both tickers boast a ‘Strong Buy’ consensus rating from the rest of the Street. Let’s take a closer look.
Unicycive Therapeutics (UNCY)
We’ll start with Unicycive Therapeutics, a biotech company focused on the treatment of hyperphosphatemia. This condition is a common side effect of chronic kidney disease (CKD) and is a leading cause of excess death in dialysis patients. Hyperphosphatemia is particularly dangerous because it is symptomless and can only be tracked by frequent blood tests. Even when controlled, it still imposes a burden on patients; CKD is the chronic illness with the highest ‘pill burden’ – a median of 19 prescription pills taken daily by patients, even higher than for AIDS or congestive heart failure.
Unicycive aims to both treat hyperphosphatemia and reduce the pill burden on patients, with the goal of improving medication compliance and thus also improving medical outcomes. The company’s leading drug candidate, oxylanthanum carbonate (OLC), is…
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