Investing

8 Analyst Stocks Under $10 With Massive Upside Calls

Diana Shipping

Diana Shipping is currently trading right at 52-week lows. Deutsche Bank raised its rating to Buy from Hold back on Monday, and the firm gave a price target of $8 in the call. Shares ended the week at $6.08, which implies close to 30% upside. The 52-week trading range is $6.02 to $12.20.

FuelCell Energy

Because it does not get analyst calls that often, FuelCell Energy has not appeared in our stocks under $10 list in some time. A firm named Dougherty & Co. started coverage with a Buy rating on Friday. The big call is the $2.45 price target. Even after the gain on Friday, the $1.28 close implies upside of 90% here.

The firm projected that FuelCell has reached an inflection point with its power stations, and it expects that the company will become profitable by the beginning of 2016. Its stock was called undervalued, as investors may still doubt that the market for stationary power stations based on fuel cells is ripe for the significant growth that can be expected ahead. FuelCell Energy shares have traded between $1.05 and $2.84 in the past year.

MannKind

This biotech faced one of those analyst ratings that is still positive in general, but which came with a lower price target ambition. We will leave it up to readers to decide how positive it is. RBC Capital Markets maintained its Outperform rating on Thursday, but the firm lowered its price target to $10 from $13. The prior closing price was $5.28, and we could not help but notice that shares slid to $5.18 on the day of the call and then to $5.04 by Friday’s close. MannKind has a 52-week range of $4.45 to $11.48 and a consensus analyst price target of $8.16.

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Medgenics

Back on Monday, JMP Securities started Medgenics with a Market Outperform rating. The firm’s price target of $15 compared to a prior closing price of $8.69, and the price was $9.13 by week’s end. Just keep in mind that the price rose as high as $9.60 back on Monday around the call. This has a thin following, thin trading volume and a 52-week range of $3.68 to $9.63.

Plug Power

Like FuelCell, this stock was also started with a Buy rating by Dougherty & Co. on Friday. The firm issued a price target of $3.70, which implies a gain of almost 40% from the $2.67 close on Friday. The firm pointed to growth and margin expansion, the materials handling market gains, adjacent markets, its key partnerships and strong customer relationships. The firm expects that Plug Power can reach breakeven by the end of 2016. The stock has a 52-week range of $2.42 to $8.37.

PMC-Sierra

On Thursday, PMC-Sierra was started with a Buy rating and was given a price target of $12 at the boutique called Benchmark. This was versus a prior $9.29 closing price, and shares were at $9.24 at the close on Friday. That $12 target is almost 20% higher than the consensus price target of $10.20, and it implied upside of 30% ahead from Friday’s trading, of Benchmark’s call proves accurate.

If you want proof that not all small-cap tech stocks rally into larger companies, PMC-Sierra has traded under $10 going back to 2006, and its 52-week range is $6.52 to $9.86.

Runner Up

On Tuesday, SuperCom Ltd. (NASDAQ: SPCB) was started as Buy with a $17.75 price target at B. Riley. Shares had closed at $9.83 before the call, but they were above $10 at end of Friday — closing at $11.22. That means that sub-$10 investors will have to hope for a pullback. SuperCom shares have a 52-week range of $7.00 to $14.15.

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One late-week review came from Credit Suisse, wherein the firm shifted its bias to small cap stocks from large cap ones. It just sees better select values in that category. Still, one cannot consider small caps without considering that they are often taking on much larger risks than Dow and most S&P 500 stocks.