Not all analysts and their respective opinions are created equal. Reputation and track record can be defining features that elevate individual analysts to the front of the pack. While no investment decision should ever be made considering the analyst ratings alone, they can provide a “jumping-off point” to conduct deeper research into potentially high-probable trades.
Using consensus ratings primarily from four- and five-star rated Wall Street analysts, these three healthcare microcaps have the potential to see triple-digit returns over the next year and beyond:
Healthcare Pick #1: Palatin Technologies
Palatin Technologies, Inc. (NYSE: PTN) is a Cranbury, New Jersey-based biopharmaceutical company that focuses on the research and development of targeted receptor therapeutics for a wide range of diseases and ailments. While Palatin has several therapeutics in development, its flagship product, Vyleesi, is a melanocortin receptor agonist designed to treat premenopausal women with generalized hypoactive sexual desire disorder.
The biopharmaceutical company is covered by three top-tier analysts: Michael Higgins of Ladenburg Thalman (4.5 stars); John Newman of Canaccord Genuity (5 stars); and Joseph Pantginis of H.C. Wainwright (5 stars).
As of this writing, analysts maintain an average price target of $2.17 for Palatin Technologies, which represents over 424% potential upside from its closing price of $0.41 on Monday, November 16, 2020. Mr. Newman gave the healthcare company a $3.00 target, Mr. Pantginis provided a target of $2.00, and Mr. Higgins sees the company at $1.50, according to Tipranks.
Pick #2: Achieve Life Sciences
Achieve Life Sciences, Inc. (NASDAQ: ACHV) is engaged as a clinical-stage pharmaceutical company, which focuses on the research, development, and commercialization of cytisinicline to help consumers trying to quit smoking and nicotine consumption. Cytisinicine is a plant-based alkaloid that can interact with the same receptors in the brain that are utilized by nicotine. This helps provide relief from nicotine withdrawal symptoms.
The pharmaceutical company is currently covered by four analysts: Jason McCarthy of Maxim Group (5 stars); Vernon Bernardino of H.C. Wainwright (5 stars); Michael Higgins of Landenburg Thalman (4.5 stars); and Thomas Flaten of Lake Street (3.2 stars).
As of November 16, 2020, Achieve Life Sciences trades at $10.36. The analyst average price target is $43.75 or an implied upside of 322.30% from its current price, according to Tipranks. Michael Higgins is the most bullish analyst with a massive price target of $100 per share. Mr. McCarthy and Mr. Bernardino maintain individual price targets of $21 and $24 respectively.
Pick #3: Lineage Cell Therapeutics
Lineage Cell Therapeutics, Inc. (NYSE: LCTX) operates as a clinical-stage biotechnology company, which focuses on the research, development, and commercialization of therapeutics to treat degenerative diseases. Lineage Cell Therapeutics currently has two leading products in development: OpRegen, OPC1, and VAC2.
OpGen is a retinal pigment epithelium cell replacement therapy currently in Phase 1/2a clinical trials for the treatment of dry macular degeneration due to age. OPC1 is an oligodendrocyte progenitor cell therapy undergoing Phase 1/2a multicenter clinical trials for the treatment of acute spinal cord injuries. VAC2 is an allogeneic cancer immunotherapy currently undergoing Phase 1 clinical trials for the treatment of non-small cell lung cancer.
Lineage Cell Therapeutics is currently covered by six analysts: Joseph Pantginis of H.C. Wainwright (5 stars); Jason McCarthy of Maxim Group (5 stars); Ahu Demir of Noble Financial (4.1 stars); Keay Nakae of Chardan Capital (4 stars); Dane Leone of Raymond James (5 stars); and Jason Kolbert of Dawson James (no rank).
The clinical-stage healthcare company trades at $1.32, as of November 16, 2020. The average price target from analysts comes in at $4.50, which implies an upside of nearly 241% from current levels. Joseph Pantginis maintains the most bullish outlook on Lineage Cell Therapeutics, with a price target of $7.00. On the other hand, Dane Leone rates the company a “Hold.”
Disclosure: Matt Rego and Spotlight Growth do not have any positions or relationships with any healthcare companies mentioned in this article. This article should not be taken as a solicitation or recommendation to buy or sell any securities. Please conduct your own research and consult your financial advisor to determine your risk tolerance and investment path. We are not licensed brokers or investment advisors.