10 Stocks Under $1 That Will Explode

6. Mereo BioPharma Group plc (NASDAQ:MREO)

Share Price (As of January 8, 2026): $0.38

Upside Potential: 290.20%

Number of Hedge Fund Holders: 22

Mereo BioPharma Group plc (NASDAQ:MREO) is included in our list of the stocks under $1 that will explode.

On December 30, 2025, TheFly reported that Jefferies downgraded Mereo BioPharma Group plc (NASDAQ:MREO) from ‘Buy’ to ‘Hold’. The firm reduced its price target from $7.00 to $0.50, citing disappointing Phase 4 data for setrusumab. The antibody missed its primary endpoints in both the ORBIT and COSMIC trials, resulting in a sharp decline in the company’s and its partner Ultragenyx’s shares. The firm believes Mereo’s heavy reliance on a potential EUA path for setrusumab and its need to secure a partnership for alvelestat adds risk to the company’s outlook.

On the previous day, Baird also reduced its price target on Mereo BioPharma Group plc (NASDAQ:MREO) from $8 to $1, while maintaining an ‘Outperform’ rating. Removing its “Fresh Pick” designation, the firm sees a lower chance of success for setrusumab in Osteogenesis Imperfecta due to the lack of statistically significant fracture-rate reduction. The probability of success set by the firm is 5%.

On December 29, 2025, Mereo BioPharma Group plc (NASDAQ:MREO) announced that both ORBIT and COSMIC failed on primary fracture endpoints. Both reported statistically significant improvements in bone mineral density and an unchanged safety profile.

Mereo BioPharma Group plc (NASDAQ:MREO), a clinical-stage biopharma company, develops therapies for rare diseases and oncology. Its pipeline spans partnered and wholly owned programs across bone, respiratory, and reproductive indications.