Analyst: This Penny Stock Can Double

The brokerage firm initiated coverage with a "buy" rating

Canaccord Genuity initiated coverage on Dolphin Entertainment Inc (NASDAQ:DLPN) with a "buy" rating and $3 price target -- representing expected upside of nearly 119% to last night's close. The brokerage firm said the Florida-based public relations company is poised to take a "small piece of a big pie" in content marketing as streaming heavyweights Netflix (NFLX) and Amazon (AMZN) increase their spending, and pegged it as a potential M&A target.

Today's pop runs counter to DLPN's longer-term trajectory, with the shares down 77.2% year-over-year. More recently, the stock has been pressured by its 20-day moving average since July, and hit a three-year low of $1.05 on Nov. 2.

However, Canaccord Genuity's bullish outlook mirrors the one other analyst in coverage on DLPN. Plus, its average 12-month price target sits all the way up at $3.25.