2 Penny Stocks Expected to Double

Both healthcare stocks scored lofty new price targets today

Biotech concerns Precipio Inc (NASDAQ:PRPO) and Aptinyx Inc (NASDAQ:APTX) scored new analyst ratings today, with the brokerage firms expecting big moves for the penny stocks. Both equities have struggled so far in 2019, but their new price targets suggest Wall Street is rolling the dice on a comeback.

Alliance Global Partners launched coverage of PRPO stock with a "buy" rating and $6.30 price target -- more than double the equity's current price. The analysts said Precipio "has staked out a unique position within hematological cancer diagnostics," and expects the stock to "generate rapid growth over the next several years." In addition, Alliance Global believes PRPO "will attract additional investor and research attention" as the company executes its business plan.

PRPO shares touched an annual high of $10.80 on May 2, but have since surrendered roughly 70% of their value. In fact, the stock's pullback was so steep, Precipio CEO Ilan Danieli issued a letter to shareholders on Monday, June 17, to discuss "the recent pricing pressure." Danieli acknowledged that PRPO has been "under assault by the shorting interests," and reassured shareholders that the firm is not "holding back" company news. Further, the CEO said the "bottom line" is that "nothing has changed" regarding Precipio's product pipeline, and it remains "in a position to create long-term value" for PRPO shareholders.

Despite the letter, the stock continued its retreat, and is now close to filling an early April bull gap. The security is also now trading south of its 80-day moving average -- a trendline that put a cap on rebound attempts earlier this year. At last check, PRPO is down 3.8% to trade at $3.00.

Aptinyx stock, meanwhile, scored a fresh "outperform" rating and $12 price target from SVB Leerink -- representing nearly four times yesterday's close of $3.11. APTX shares have struggled since a massive January bear gap, which stemmed from poorly received data on the company's diabetic nerve treatment. The security has subsequently stair-stepped even lower beneath its 30-day moving average, touching a record low of $2.88 on June 7. At last check, APTX is up 4.8% to trade at $3.26.

Despite the stock's struggles in 2019, today's new analyst attention is par for the course. In fact, four of five analysts following the equity maintain "buy" or better opinions, and the consensus 12-month price target rests at a lofty $13.