Analyst: This Penny Stock Could Double

The brokerage firm initiated coverage with an "outperform" rating

The shares of HyreCar Inc (NASDAQ:HYRE) are bucking the broad-market trend lower today, thanks to some optimistic analyst attention. Specifically, Northland Capital initiated coverage of HYRE shares with an "outperform" endorsement and a price target of $5 -- more than double the penny stock's current price -- citing improving gross margins. At last check, HYRE stock was up 11% to trade at $2.35.

The car-sharing concern actually priced its initial public offering (IPO) at $5 a share back in late June. The equity peaked at $6.50 the day it went public, on June 27, and has since endured a steady downtrend, bottoming at $1.53 on Dec. 4. While the shares are now on pace to end atop their 60-day moving average for the first time ever, upside momentum has stalled recently in the formerly supportive $2.50 region -- half the aforementioned IPO price.

Even before Northland Capital came on the scene, the two analysts following HYRE were bullish, issuing "buy" endorsements. Plus, the consensus 12-month price target on the security stands at $4.50, representing expected upside of nearly 88% to current levels.