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These 3 Penny Stocks Could Rally Over 100%, Says Roth Capital

Does high risk mean high reward? Not necessarily, so say the pros on Wall Street. Specifically citing penny stocks, or stocks that trade for less than $5 per share, analysts advise caution as these names might still be in the early innings, or it could be that they face an uphill battle that is just too steep.Luring investors with their bargain price tags, these stocks might be up against overpowering headwinds or have weak fundamentals.However, analysts argue there are early-stage companies that reflect promising opportunities, with the low share prices meaning you get significantly more bang for your buck. What’s more, even what seems like minor share price appreciation can result in massive percentage gains.The bottom line? Not all risk is created equal. To this end, the pros recommend doing some due diligence before making an investment decision.With this in mind, we turned to investment firm Roth Capital for some inspiration. The firm’s analysts have pinpointed three compelling penny stocks, noting that each could climb over 100% higher in the year ahead. Using TipRanks’ database, we found out what makes all three such exciting plays even with the risk involved. CohBar (CWBR)Focused on developing mitochondria-based therapeutics (MBTs), CohBar wants to find new treatments for diseases associated with aging and metabolic dysfunction. Based on the strength of its technology and its $0.96 share price, Roth Capital thinks that now is the time to pull the trigger.Writing for the firm, analyst Elemer Piros points out that CWBR was able to turn over 100 mitochondrial peptides into 1,000 mitochondrial-based therapeutics (MBT). Company scientists and researchers from around the world have found that mitochondrial peptides regulate multiple physiological systems, including risk factors which lead to cardiovascular and neurodegenerative diseases, obesity, diabetes, fatty liver disease fibrotic and inflammatory conditions and cancer.It should be noted that peptides are either continually or intermittently released to modulate biological functions, but it’s difficult to deliver them as therapies. Additionally, they also tend to have shorter half-lives. “CohBar developed methods to modify peptides and plan to use modified analogues for clinical development,” Piros commented.Up first for CWBR is CB4211, its optimized analog of the MOTS-c mitochondrial-derived peptide. The company’s first clinical candidate is wrapping up a Phase 1b trial in patients with fatty liver disease. According to management, there are 10 patients who will be randomized for treatment with CB4211 and 10 for placebo, with the results expected in Q1 2021.Nonalcoholic Fatty Liver Disease (NAFLD) is a condition defined by excessive fat accumulation in the form of triglycerides (steatosis) in the liver in individuals who consume little or no alcohol. What’s more, the company will also target non-alcoholic steatohepatitis (NASH), which is the most severe form of NAFLD.Piros acknowledges that competition in the space is fierce, but says “no winners can be identified, yet.” Expounding on this, the analyst stated, “CB4211 offers a yet unexplored mechanism of action, which is foundational, based on the natural control of homeostasis, which is lost due to environmental or genetic insults. The compound was derived from naturally occurring mitochondrial peptides, with the purpose of restoring, rebalancing homeostasis with the goal of reversing disease processes.”Based on the above, Piros sees an attractive risk/reward in CWBR shares. “[We] value CohBar based on a comparable universe of early- to mid-stage companies with platforms that could yield multiple drug candidates. The average enterprise value of this group of companies is $268MM vs. CohBar at $38MM. We project that CohBar shares could trade in line with the average,” the analyst concluded.To this end, Piros rates CWBR a Buy along with an $8 price target. Should his thesis play out, a potential twelve-month gain of 741% could be in the cards. (To watch Piros’ track record, click here)Overall, CWBR has a small, but vocal camp of bullish analysts with positive expectations for its stock. Out of the 2 analysts polled by TipRanks, both rate the stock a Buy. With a return potential of 557%, the stock’s consensus price target stands at $6.25. (See CWBR stock analysis on TipRanks)Eyenovia (EYEN)By utilizing its patent piezo-print delivery technology, Eyenovia is developing a pipeline of micro-dose therapeutics. With shares changing hands for $3.41 apiece, Roth Capital sees an attractive entry point for investors.In October, Eyenovia announced that an affiliate of Bausch Health Companies had acquired an…

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