Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC), PROLOR Biotech Inc. (NYSEMKT:PBTH) and Clean Diesel Technologies Inc. (NASDAQ:CDTI) are three analyst stock picks for under $10.00 per share that are worth watching. In this article, we’ll take a look at these analyst opinions and the key drivers behind the stocks moving forward.
Cyclacel Gets $3.00/Share Price Target
Cyclacel Pharmaceuticals Inc., a biopharmaceutical company focused on cancer and other serious disorders, was initiated with an Outperform rating and $3.00 per share price target at Leerink this week. At a significant 143% premium to the current market price, the analyst’s price target reflects a very bullish sentiment on the stock over the coming quarters.
With its novel pipeline of three clinical stage cancer drugs and a mere $57 million market capitalization, the biopharmaceutical company has a number of near-term catalysts that could propel the stock higher. Its Sapacitabine drug in particular has demonstrated strong efficacy in Phase II trials, with overall response rates of up to 45%, while it is currently in Phase III clinical trials under a SPA.
Recently, the stock has been under pressure due to a $10.36 million stock and warrant offering. But with the offering already priced in, new investors can purchase the stock at a significant discount. At the same time, the company’s long-term prospects remain intact, while analysts like Leerink deem it significantly undervalued.
PROLOR Attracts Two Very Bullish Analysts
PROLOR Biotech Inc., a biotechnology company utilizing its technology to develop versions of therapeutic proteins, was initiated by both Summer Street and Morgan Joseph this week. With price targets of $8.00 and $16.00 per share respectively, both analysts appear to have a very bullish stance on the future of this unique biotech stock.
The Israeli biotech company has turned a few heads with its proprietary CTP enhanced recombinant protein technology. By utilizing these technologies, the company hopes to move through clinical trials more quickly and less expensively by focusing on the same endpoints and protocols as existing therapies. Meanwhile, Phase II trials showed that its hGH-CTP was both well-tolerated and demonstrated a half-life that was 10x longer than commercial hGH.
While the stock’s performance has been somewhat lackluster in 2011, many biotech investors are betting that the full release of its Phase II results and continued clinical progress will provide near-term and long-term catalysts as well as drive value.
Clean Diesel Gets $9.00 Price Target
Clean Diesel Technologies Inc., a global manufacturer and distributor of emissions control systems and products, was initiated with a Buy rating and $9.00 per share price target by Roth Capital this week. At a significant 34% premium to the current market price, even after Tuesday’s significant move higher, the recommendation represents a very bullish outlook on the company.
After completing a 3 million share offering for $10 million, a key void in operating capital was filled and some near-term risks dissipated. Meanwhile, analysts like Zacks are predicting that there will be significant changes in regulatory standards for emissions over the next five years, which could rapidly expand the company’s addressable market.
In the end, the EPA’s decision to finalize its transportation rules in July could present some near-term catalysts for the stock. Longer-term, the EPA and National Highway Traffic Safety Administration are expected to announce additional emissions standards to between 47 and 62 miles per gallon by 2025, according to a recent report published by OMB Watch.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.