Investors’ concerns over the Fed’s tightening monetary policy to combat persistently high inflation and the possibility of a recession have kept the stock market under tremendous pressure lately. Moreover, the Fed is expected to raise interest rates by 75 basis points next month, followed by 50 basis points in September.
Slowing growth and ongoing monetary tightening have weighed heavily on the market sentiment. However, experts believe it will be wise to stay invested, and running to the sidelines could lead to lower returns in the long term.
Despite the risk-off environment, Wall Street analysts expect low-priced stocks Provention Bio, Inc. (PRVB) and Trevi Therapeutics, Inc. (TRVI) to surge exponentially in the near term. So, we think these stocks could be ideal additions to your watchlist.
Provention Bio, Inc. (PRVB)
PRVB is a clinical-stage biopharmaceutical company that focuses on developing and commercializing therapeutics and solutions to intercept and prevent immune-mediated diseases.
The company’s product candidates include PRV-031 teplizumab and monoclonal antibodies (mAb) for treating type one diabetes, PRV-3279 to treat lupus, and PRV-015 for gluten-free diet non-responding celiac disease. It has a market capitalization of $250.40 million.
In May, PRVB announced the FDA acceptance for review of Teplizumab Biologics License Application (BLA) resubmission for the delay of clinical type 1 diabetes in at-risk individuals. The FDA has assigned a user fee goal date of August 17, 2022.
“We are looking forward to sharing the progress of our commercial launch plans in anticipation of, if approved by FDA, bringing the first-ever disease-modifying therapy to the T1D clinical community and the patients and their families who have remained substantially underserved and frustrated for generations,” said Ashleigh Palmer, PRVB’s CEO & Co-Founder.
In the fiscal 2022 first quarter ended March 31, 2022, PRVB’s collaboration revenue amounted to $580,000, and its net interest income improved 103.6% from the year-ago value to $57,000. As of March 31, 2022, the company’s cash, cash equivalents, and marketable securities came in at $113.36 million, while its total assets stood at $122.46 million.
The $7.46 million consensus revenue estimate for the fiscal year 2022, ending December 2022, represents a 434.6% improvement from the previous year. Analysts expect PRVB’s EPS for fiscal 2023 (ending December 2023) to grow 38.1% year-over-year.
The stock has declined 30.4% year-to-date to close the last trading session at $3.91.
However, the 12-month median price target of $13.00 indicates a 232.5% potential upside. The price targets range from a low of $13.00 to a high of $16.00. Of the five Wall Street analysts that rated PRVB, four rated it Buy, while one rated it Hold.
Trevi Therapeutics, Inc. (TRVI)
TRVI is a clinical-stage biopharmaceutical company. It focuses on the development and commercialization of Haduvio to treat severe neurologically mediated conditions. The company has a license agreement with Endo Pharmaceuticals Inc. to develop and commercialize products incorporating nalbuphine hydrochloride in any formulation. TRVI has a market capitalization of $94.78 million.
Yesterday, TRVI reported positive results from its Phase 2b/3 Pruritus Relief through Itch-Scratch Modulation (PRISM) trial of Haduvio in treating prurigo nodularis.
“This positive trial in prurigo nodularis, along with the highly statistically significant data from the interim analysis of our Phase 2 trial in IPF chronic cough that we presented earlier this year, further supports our belief that Haduvio could potentially benefit patients across a broad range of refractory chronic pruritic and cough conditions,” said Jennifer Good, President, and CEO of TRVI.
In April, TRVI completed a $55 million private placement. The gross proceeds might allow the company to fund the next phase of clinical development for Haduvio in chronic cough in IPF.
As of March 31, 2022, TRVI’s cash and cash equivalents came in at $29.11 million. In addition, the company’s working capital stood at $16.97 million, while its total assets came in at $30.39 million.
The consensus revenue estimate for the fiscal year 2022 (ending December 2022) represents an increase of 49.3% from the last year. TRVI’s shares have gained 255% over the past six months and 213.2% year-to-date to close the previous trading session at $2.45.
Each of the three Wall Street analysts that rated TRVI rated it Buy. The 12-month median price target of $10.00 indicates a 308.1% potential upside.
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PRVB shares were trading at $3.98 per share on Thursday morning, up $0.07 (+1.79%). Year-to-date, PRVB has declined -29.18%, versus a -20.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Mangeet Kaur Bouns
Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...
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