In what started out as just another week with another round of highs for stocks, the picture changed by the time Thursday and Friday came around. Still, despite an Israeli ground troop effort and despite a passenger jet being shot down over the Ukraine, stocks were higher on Friday. This is a market in which stock pickers are still looking for upside, and the stocks under $10 remain of interest because of how much upside investors believe they can see.
24/7 Wall St. reviews dozens of analyst research reports each day of the week for new ideas for our readers. While we often see many upside and downside stocks in these reports, sometimes we see calls for stocks to rise 50%, 100% or even exponentially. We generally have to go through 200 to 300 analyst calls to put together the proper list of analyst calls in stocks under $10, and we filter out OTC stocks and other calls selectively.
Also note that low-priced and small-cap stocks generally have more implied risk than most established stocks. You just almost never see upside targets issued on DJIA stocks with this sort of magnitude.
Furthermore, be aware that very few of these under $10 stocks would generally pass a “widows and orphans” suitability test for investors. This is what brokers and financial advisors have to consider when it comes to ethics and suitability for clients.
These are the 12 analyst stocks tracked during the past week with very positive analyst ratings and still trading under $10.
Aerohive Networks Inc. (NYSE: HIVE) is still a fairly new company, and analysts had been positive on this stock previously. We saw that Buckingham Research issued a new Buy rating on the mobility provider with an $11 price target. That is not even the highest price target, and a late Friday price of $7.70 gives an implied upside of more than 40%.
Aeterna Zentaris Inc. (NASDAQ: AEZS) is a biotech stock that could be close to a triple, if the firm H.C. Wainwright is correct. The firm issued a Buy rating and $3 stock target on Thursday, and shares were around $1.20 Friday afternoon.
B2Gold Corp. (NYSE: BTG) is a small gold stock, covered in a much broader J.P. Morgan note this past week, that the firm feels has much upside. Talked up was its recent $570 million acquisition of Papillon Resources at a very remarkable $125 per ounce. With its African project that is expected to be in production in 2016, many on Wall Street feel that is a very bullish sign for the overall gold sector. The consensus price target is $3.70. Shares closed trading on Tuesday at $2.71 and traded at $2.75 on Friday.
Gastar Exploration Inc. (NYSEMKT: GST) was started as Buy with a $12 price target (versus an $8.06 close) at Canaccord Genuity. The report on Thursday implied upside of nearly 50%, with the analyst comment that there is more here than meets the eye. Shares went above $8.30 initially after the call. They were back under $8 late on Friday.