Analyst: These 2 Penny Stocks Could Quadruple

H.C. Wainwright initiated coverage on Matinas and Acasti with a "buy" rating

H.C. Wainwright just initiated coverage on biotechs Matinas BioPharma Holdings Inc (NYSEAMERICAN:MTNB) and Acasti Pharma Inc (NASDAQ:ACST) starting both with "buy" ratings and a $4 and $6 price targets, respectively -- a roughly 400% premium to each stock's close last night. The firm said it based its coverage on a 100-physician survey and analysis of both firms' omega-3 platforms.

Looking at MTNB, the analyst is optimistic about the drugmaker's hypertriglyceridemia treatment, MAT9001, saying the drug has potential to stand out from its competitors following potential Food and Drug Administration (FDA) approval. The stock surged to a two-week high of $0.89 earlier -- briefly topping its 20-day moving average for the first time this month. The shares have pared back some, now up 5.8% to trade at $0.85.

On the charts, MTNB has been on a gradual slide ever since hitting a one-year high of $1.50 in early March -- pushed lower by its 40-day trendline. The stock has managed to stay afloat atop its $0.80 region however, and boast a 42.9% year-to-date gain.

Turning to Acasti, H.C. Wainwright said it thinks the pharma concern's CaPre omega-3 option could gain traction following potential approval from the FDA. The stock just touched a nine-month high in response, and is now up 11.3% at $1.17. The security is already boasting an impressive weekly gain, up 16%.

Today's bull note has completely overshadowed the security's less-than-impressive earnings release, too. Acasti reported a fiscal fourth-quarter loss that was wider than what analysts were expecting, but slimmer than the same quarter last year. The company also reported flat revenue, in line with estimates.