While most of Wall Street focuses on large- and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it is pretty hard to get any decent share count leverage.
Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found four biotech stocks trading under the $10 level that could provide investors with some solid upside potential.
While all four are rated Buy at Goldman Sachs, they are much better suited for aggressive investors, and it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This clinical-stage biotechnology company received some big patent news this year. Axcella Health Inc. (NASDAQ: AXLA) is pioneering a new approach to treat complex diseases and improve health using endogenous metabolic modulator (EMM) compositions.
The company’s product candidates are comprised of EMMs and their derivatives that are engineered in distinct combinations and ratios to simultaneously impact multiple biological pathways. Axcella’s pipeline includes lead therapeutic candidates for non-alcoholic steatohepatitis (NASH) and the reduction in risk of overt hepatic encephalopathy recurrence. Additional muscle- and blood-related programs are in earlier-stage development.
The company offers AXA1665 for use in treating overt hepatic encephalopathy; AXA1125 and AXA1957 to treat NASH; AXA2678 for use in treating muscle atrophy; and AXA4010 to target multiple biological pathways to support normal structures and functions of the blood.
Back in the summer, Axcella announced that the issuance of new patents has resulted in two lead product candidates, AXA1665 and AXA1125, now being covered under U.S. patents for both composition of matter and methods of use. These are the first patents related to Axcella’s family of applications for AXA1665, the firm’s product candidate to reduce the risk of overt hepatic encephalopathy recurrence.
Goldman Sachs has a $9 price target, though the Wall Street consensus target is much higher at $18. The shares have traded solidly higher in the past couple of weeks and were last seen below $6 per share.