The traditional knowledge is that we’re on the cusp of one other main inventory market rally. 2020 has been a risky yr, with the unprecedented ‘coronavirus recession’ in February and March, adopted by a bull run by the summer time and fall, with elevated volatility in late autumn, as traders tried to make sense of the elections and the ‘second wave’ of the virus.However that’s all prior to now. The election is settled, Congress will likely be break up so narrowly that main legislative initiatives are unlikely, and the long-awaited COVID vaccines are beginning to enter circulation. In brief, we’ve got a mixture of threat and reward establishing, for traders keen to place some pores and skin within the sport. And for many who are really able to shoulder the additional threat, penny shares could be the appropriate alternative for a significant rally. These shares are priced low, below $5 per share, and low costs often occur for an excellent purpose. However some penny shares are essentially sound, and with their low worth already baked in, they’ve nowhere to go however up. Utilizing the TipRanks database, we’ve pulled up particulars on two compelling shares that match this profile of low share worth and big upside potential, 200% or extra, in accordance with Wall Road analysts. To not point out, each boast a “Sturdy Purchase” consensus score.Palatin Applied sciences (PTN)We’ll begin with Palatin Applied sciences, a biopharmaceutical firm with a novel area of interest and a aggressive benefit. Palatin specializes within the growth of melanocortin and natriuretic peptide receptor techniques. These are a brand new class of potential medicines, receptor-specific and extremely focused towards particular ailments. Palatin has medicine in growth for dry eye illness, weight problems, and congestive coronary heart failure. Palatin’s pipeline has extra fast functions, as properly – PL8177, initially developed to focus on ulcerative colitis, has lately entered Part 1 trials as a remedy for COVID-19.For the aggressive benefit, Palatin has Vyleesi. Vyleesi is the advertising and marketing model title of bremelanotide, the primary melanocortin peptide remedy for premenopausal girls with generalized hypoactive sexual want dysfunction. The FDA considers Vyleesi a ‘first in school’ treatment, and accredited it to be used in June 2019. Palatin has been advertising and marketing Vyleesi in North America since then. In July of this yr, Palatin settled a authorized dispute with AMAG Pharmaceutical, wherein Palatin regained all North American authorized rights to Vyleesi, together with a $16.3 million settlement, of which $12 million has already been paid. At present going for $0.42 apiece, Canaccord analyst John Newman thinks that the share worth presents a pretty entry level.”Vyleesi continues to make business progress, securing broader insurance coverage reimbursement protection and strengthening relationships with healthcare suppliers […] Palatin continues to search for potential US re-licensing for Vyleesi to reinforce commercialization. Potential re-licensing/partnership may revolve round an organization presently within the feminine healthcare merchandise market. We consider a brand new re-licensing settlement may carry a significant upfront cost, on condition that Vyleesi has full FDA approval,” the 5-star analyst opined.On prime of this, Palatin introduced Part 2 knowledge from its PL9643 dry eye illness (DED) exploratory research final week. Newman factors out that the outcomes “confirmed statistically important enchancment in a number of indicators and signs within the reasonable to extreme affected person inhabitants.” Palatin plans to provoke section 2/3 trials in mid-2021.According to his bullish stance, Newman charges PTN a Purchase, and his $3 worth goal implies room for a whooping 615% upside potential within the subsequent 12 months. (To observe Newman’s observe document, click on right here)Total, Palatin will get a Sturdy Purchase score from the analyst consensus, and that verdict is unanimous, primarily based on 3 latest Purchase critiques. The typical worth goal, $2.17, implies a formidable 417% upside for the approaching yr. (See PTN inventory evaluation on TipRanks)Mustang Bio (MBIO)Mustang Bio is one other scientific section biopharmaceutical firm. Mustang’s focus is on potential cures for blood cancers, stable tumors, and genetic ailments, utilizing medical breakthroughs in cell and gene therapies to create focused medicines. The corporate is actively creating CAR-T (Chimeric antigen receptor T cells) therapies as remedies for non-Hodgkin’s Leukemia and different cancers.Mustang has a strong analysis pipeline, with gene therapies, hematologic CAR-Ts, and stable tumor CAR-Ts in growth to deal with a variety of ailments. Pre-clinical analysis is ongoing, and Part 1 and a couple of trials are deliberate by 2023. The corporate has six scientific trials ongoing, for situations starting from glioblastomas to a number of myeloma to prostate most cancers. The corporate’s scientific stage drug, MB-106, is displaying promise as a remedy for non-Hodgkin’s Leukemia.In his detailed evaluate of the corporate for B. Riley Securities, analyst Justin Zelin notes the early success of MB-106, and its potential for the corporate going ahead.“We view MB-106’s sturdy efficacy of 89% general response price (ORR) and 44% full response price (CRR) and a particularly favorable security profile in n=9 NHL sufferers handled with Mustang’s modified cell manufacturing course of as a considerably constructive de-risking occasion for this system and Mustang’s platform general. On the heels of this constructive data-set, Mustang will file an Investigational New Drug (IND) utility in 1Q21E to allow the initiation of a multi-arm multicenter Part II research of MB-106, offering a de-risked registrational pathway to approval in CD20+ NHL sufferers,” Zelin wrote.On the backside line, Zelin is bullish on Mustang, writing, “We proceed to consider Mustang Bio is undervalued relative to friends on account of a historic lack of catalysts and scientific knowledge, which is now altering with constructive scientific knowledge shows.”Zelin’s feedback again up his Purchase score, and his $13 worth goal signifies room for as much as 300% development subsequent yr. (To observe Zelin’s observe document, click on right here)Mustang is one other penny inventory with a unanimous Sturdy Purchase score, this one primarily based on 4 latest Purchase critiques. The corporate’s shares are promoting for $3.16 and have a median worth goal of $10.75, suggesting an upside 235% on the one-year time-frame. (See MBIO inventory evaluation on TipRanks)To search out good concepts for penny shares buying and selling at enticing valuations, go to TipRanks’ Greatest Shares to Purchase, a newly launched device that unites all of TipRanks’ fairness insights.Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is vitally essential to do your personal evaluation earlier than making any funding.