In this article, we will take a look at the 5 most promising penny stocks according to analysts. To see more such companies, go directly to 10 Most Promising Penny Stocks According to Analysts.
5. Affimed N.V. (NASDAQ:AFMD)
Average Analyst Price Estimate: $6.00
Upside Potential: 971.43%
Germany-based Affimed N.V. (NASDAQ:AFMD) is working on cancer immunotherapies. Affimed N.V. (NASDAQ:AFMD)’s average price target set by Wall Street analysts is about 6%, which shows a strong upside potential from the stock price of $0.56 as of August 8.
In May Affimed N.V. (NASDAQ:AFMD) jumped after the FDA cleared an Investigational New Drug Application (IND) permitting a Phase 2 trial to study its innate cell engager AFM13 in a combination therapy for certain patients with Hodgkin Lymphoma.
As of the end of the first quarter of 2023, 12 hedge funds tracked by Insider Monkey had stakes in Affimed N.V. (NASDAQ:AFMD). The biggest stakeholder of Affimed N.V. (NASDAQ:AFMD) during this period was Ari Zweiman’s 683 Capital Partners which owns a $6.7 million stake in the company.
4. Synlogic, Inc. (NASDAQ:SYBX)
Average Analyst Price Estimate: $5.50
Upside Potential: 1006.64%
Massachusetts-based biopharmaceutical company Synlogic, Inc. (NASDAQ:SYBX) is engaged in the development of synthetic biotics to treat metabolic and immunological diseases in the United States. In July Synlogic, Inc. (NASDAQ:SYBX) jumped after the company said the FDA issued Fast Track designation to the company’s experimental therapy labafenogene marselecobac to treat the rare metabolic disorder phenylketonuria.
As of the end of the first quarter of 2023, 7 hedge funds tracked by Insider Monkey were long Synlogic, Inc. (NASDAQ:SYBX). The biggest stakeholder of Synlogic, Inc. (NASDAQ:SYBX) during this period was Samuel Isaly’s OrbiMed Advisors which owns a $3.8 million stake in the company.
3. aTyr Pharma, Inc. (NASDAQ:LIFE)
Average Analyst Price Estimate: $23.00
Upside Potential: 1067.51%
According to Yahoo Finance, aTyr Pharma, Inc. (NASDAQ:LIFE)’s average price estimate according to Wall Street analysts is $21.3. TipRanks’ stock screener also shows that aTyr Pharma, Inc. (NASDAQ:LIFE)’s average price estimate is $23. aTyr Pharma, Inc. (NASDAQ:LIFE)’s lead therapeutic candidate is efzofitimod, which is a selective modulator of NRP2 that is in Phase III clinical trial for pulmonary sarcoidosis.
As of the end of the first quarter of 2023, 8 hedge funds in Insider Monkey’s database of 943 hedge funds reported having stakes in aTyr Pharma, Inc. (NASDAQ:LIFE). The most significant stakeholder of aTyr Pharma, Inc. (NASDAQ:LIFE) during this period was Timothy P. Lynch’s Stonepine Capital which owns a $10.13 million stake in the company.
2. DURECT Corporation (NASDAQ:DRRX)
Average Analyst Price Estimate: $37.67
Upside Potential: 1119.09%
Biopharmaceutical company DURECT Corporation (NASDAQ:DRRX) ranks 2nd in our list of the best most promising penny stocks to buy according to analysts. DURECT Corporation (NASDAQ:DRRX)’s average price target according to Wall Street analysts is $36, while the stock’s price as of August 8 is $3.09. This shows that DURECT Corporation (NASDAQ:DRRX) has an upside potential of over 1000%.
As of the end of the first quarter of 2023, 14 hedge funds in Insider Monkey’s database of 943 hedge funds reported owning stakes in DURECT Corporation (NASDAQ:DRRX). The biggest stakeholder of DURECT Corporation (NASDAQ:DRRX) was Lion Point of Didric Cederholm which owns a $6.5 million stake in the company.
1. Checkpoint Therapeutics, Inc. (NASDAQ:CKPT)
Average Analyst Price Estimate: $29.80
Upside Potential: 1236.32%
Checkpoint Therapeutics, Inc. (NASDAQ:CKPT) is one of the most promising penny stocks to buy according to analysts. Checkpoint Therapeutics, Inc. (NASDAQ:CKPT)’s average price target is about $29, which translated into an upside potential of over 1200% percent based on the stock’s price as of August 8.
However, Checkpoint Therapeutics, Inc. (NASDAQ:CKPT)’s hedge fund sentiment is not impressive to say the least, with just one hedge fund in Insider Monkey’s database of 943 funds having stakes in the company as of the end of the first quarter of 2023.
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