3 Promising Analyst Picks Trading Under $10 a Share

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 |  Includes: DLGC, GLUU, MRK
by: Simon Monger
Adolor Corporation (NASDAQ: ADLR), Dialogic Inc. (NASDAQ: DLGC) and Glu Mobile Inc. (NASDAQ: GLUU) are three top analyst stock picks trading under $10 per share and why they are starting to get the attention of investors.
Adolor’s Entereg Sales Looks Promising

Adolor Corporation (ADLR), a biopharmaceutical company focused on prescription pain and pain-management products, was initiated with a Buy rating and $4.00 per share price target at Brean Murray. At a significant 164% premium to the current market price, the analyst’s recommendation represents a very bullish stance on the company’s future outlook.

With Entereg sales now at a breakeven point on a cash flow basis, the company’s financial condition is slowly improving, while its ADL-5945 enrollment trends are on-track. Investors may be worried about an equity raise, but they can also look forward to top-line data from its Phase II trial to be released during the third quarter of this year, as well as a potential partnership. (Source: Press Release)

Dialogic Gets $10 Target at Craig-Hallum

Dialogic Inc. (OTCQB:DLGC), a provider of voice infrastructure solutions for emerging wireline and wireless service providers, was initiated with a Buy rating and $10.00 per share price target at Craig-Hallum. At a significant 102% premium to the current market price, the analyst’s recommendation represents a very bullish stance on the firm’s future outlook.

Investors have been looking at the company’s recent deals in China, India, Brazil and Russia as potential catalysts for growth, while its recent merger provided it with better economies of scale to expand its footprint and reduce its costs. Meanwhile, the firm forecast a significant increase in second quarter revenues as they are seeing good acceptance in the market for its technology platforms. (Source: Press Release)

Glu Mobile’s New Initiatives Paying Off

Glu Mobile Inc. (GLUU), a designer and marketer of games for mobile phones, could be worth $6.00 per share, according to ThinkEquity. The analyst raised its price target and reiterated its Buy rating on the stock citing the company’s alternative monetization mechanisms and new games. The price target reflects a significant 20% premium to the current market price.

The company has been seeing a lot of success, having recently raised its quarterly and yearly guidance. Meanwhile, with Zynga expected to file paperwork to go public in the near future, the mobile and online gaming sector could also see its multiples rapidly expand. Combined, these events could lead to significant value being unlocked for this well-positioned stock.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.