Top 11 Small Cap Stocks to Buy with Biggest Upside Potential

5. Cogent Biosciences, Inc. (NASDAQ:COGT)

Market Cap: $641.01 million

Analyst Upside: 207.10%

Number of Hedge Fund Holders: 38

Cogent Biosciences, Inc. (NASDAQ:COGT) is a biotechnology company that develops precision therapies for genetically defined diseases. The company’s focus is on its clinical program, bezuclastinib, a selective tyrosine kinase inhibitor that potently inhibits the KIT D816V mutation and other mutations in KIT exon 17.

On March 10, the company received a Buy and a $17.00 price target from Scotiabank analyst Louise Chen. Piper Sandler analyst Allison Bratzel also maintained a Buy rating on Cogent Biosciences, Inc. (NASDAQ:COGT) on March 7, setting a price target of $24.00. The company has a strong cash balance and an emerging pipeline of potentially best-in-class targeted therapies, positioning it to have a transformative 2025. It plans to submit its first NDA for its clinical program, bezuclastinib, by the end of 2025.

Cogent Biosciences, Inc. (NASDAQ:COGT) is the fifth-best small-cap stock to buy with the biggest upside potential. Analyst Robert Burns from H.C. Wainwright also reiterated a Buy rating on the company on February 28, keeping the price target at $14.00. He said the updated results from the SUMMIT trial showed considerable improvements in symptom severity. The trial evaluated bezuclastinib in non-advanced systemic mastocytosis. MS2D2, the novel patient-reported outcome measurement scale, reflected notable mean improvements in overall symptom severity from baseline at various intervals, highlighting the drug’s efficacy and supporting the optimistic future outlook.