5 Best Rated Penny Stocks to Buy According to Wall Street Analysts

4. Prairie Operating Co. (NASDAQ:PROP)

Upside Potential: 329.07%

On May 15, Roth Capital lowered its price target on Prairie Operating Co. (NASDAQ:PROP) to $3.50 from $4 while maintaining a Buy rating following the company’s first-quarter report. The firm reduced its 2026 cash flow per share estimates by approximately 20%, citing weaker first-quarter performance, an increased share count, and hedge positions that were below the firm’s commodity price assumptions. Despite the downward revision, Roth Capital maintained a constructive view on the shares, suggesting that the company still offers attractive long-term upside potential relative to current valuation levels.

Previously, on April 10, Roth Capital analyst Leo Mariani characterized the sharp selloff in Prairie Operating Co. (NASDAQ:PROP) shares following the restructuring of its preferred stock agreement as a buying opportunity. The company reached an agreement with preferred shareholder Hudson Bay to reduce anniversary warrant coverage from 125% to 75% of stated value, lowering potential dilution from approximately 77 million shares to 34 million shares while extending the warrant issuance deadline to July 8, 2026. In exchange, Hudson Bay received immediate penny warrants covering 4 million shares, with an additional 3 million-share warrant contingent upon future issuance conditions. Although Roth reduced earnings estimates due to the higher share count, the firm expressed surprise at the severity of the market reaction and reiterated its Buy rating.

Founded in 2023 and headquartered in Houston, Prairie Operating Co. (NASDAQ:PROP) is an independent energy company focused on the acquisition, development, and production of crude oil, natural gas, and natural gas liquids. Its core operations are concentrated within the Denver-Julesburg Basin in Weld County, Colorado.