Stay on the Internet long enough – and it won’t take too long, believe me – and you’ll come across voices that blast the virtues of analyst-backed stocks. Ranging anywhere from legitimate concerns to outright conspiracy theories, the suits on Wall Street don’t always get the love from retail investors. Plus, they tend to be conservative for good reason. You don’t want to destroy your reputation by endorsing junk securities.
That said, we’re all human. And humans love every now and then to speculate – even the suits at top-tier research arms. We’re not talking about garden-variety speculation such as 2X returns over the next five years. No, my friends, we’re talking about analyst-backed stocks with 10-bagger potential.
That’s right, all of these stocks – well, check that… most of these stocks – feature average expert price targets that imply a 10-bagger return or more. I must admit up front that I had to make a few minor exceptions because otherwise, we’d be stuck talking about biotechnology firms only.
Rest assured, though. If you want expert-endorsed speculation, you’ve come to the right place. Below are analyst-backed stocks that could skyrocket.
AST SpaceMobile (ASTS)
an illuminated earth seen from space simulating satellite interconnectivity
Based in Midland, Texas, AST SpaceMobile (NASDAQ:ASTS) is a satellite designer and manufacturer. Building a space-based cellular broadband network that will allow existing, unmodified smartphones to connect to satellites in areas with coverage gaps, AST represents a true innovator. It’s not finding a solution for a problem it created. Rather, coverage gaps have long frustrated both telecom providers and customers.
That said, it’s a wildly speculative idea based on its market dynamics. And by that I mean this: just look at its 52-week price chart. However, even with the obvious concerns, analysts appreciate the idea. Sure, it’s ugly now but the connectivity potential could be a game-changer. Therefore, in November of last year, Deutsche Bank’s Bryan Kraft rated shares a “buy” with a price target of $23.
At time of writing, that’s not a 10-bagger. However, it’s definitely one of the analyst-backed stocks that could storm higher.
Lastly, I couldn’t help but notice major entities are selling call options against ASTS. Basically, these are bets that ASTS won’t rise above the listed strike prices. However, I think such a move is risky given the stock’s mobility potential.
Microvast (MVST)
Energy Storage. battery stocks
A battery technology company, Microvast (NASDAQ:MVST) designs, develops and manufactures battery components and systems primarily for electric commercial vehicles. As well, it offers solutions for utility-scale energy storage systems. Further, the company owns manufacturing facilities in the U.S., China and Germany. On paper, the rise of electric vehicles should support MVST. Unfortunately, circumstances aren’t that simple.
For one thing, you can look at MVST’s trailing one-year performance. When you’re done gawking at the red ink, you can gawk some more with the five-year chart. It’s ugly and it’s not surprising. As CNBC pointed out in December, more companies are reconsidering the viability of hybrid cars and trucks. And this dynamic runs counter to the EV messaging that we’ve been hearing.
Still, the other side of the argument is that pure EVs represent the future of mobility. And if that’s the case, battery technology must improve, which could put Microvast in the driver’s seat. Analysts think so, pegging shares a unanimous strong buy with an $8 price target.
Pixelworks (PXLW)
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Established in 1997, Pixelworks (NASDAQ:PXLW) provides video and pixel processing semiconductors and software. As well, its public profile notes that it provides digital display, projection devices, and digital signage solutions. From a market dynamic perspective, PXLW represents a true oddball. Although its trailing one-year performance leaves much room for improvement, it’s off to an auspicious start to 2024.
So, what gives? For some reason – likely due to skepticism of sustained upward mobility – major traders are bearish on PXLW. I can tell that because of Fintel’s options flow screener which focuses exclusively on big block trades. In other words, it’s going to ignore the one or two contracts that retail investors buy or sell. On Jan. 30, an entity (or entities) sold 5,540 contracts of the PXLW Feb 16 ’24 2.50 Call.
At face value, that’s a bet that PXLW won’t rise above the $2.50 strike price by Feb. 16. That seems a reasonable wager. However, because it’s so reasonable, the premium received for underwriting this risk is minimal. Still, if this call goes in the money, the bears may be forced to cover, which could be bullish. Coincidentally, analysts see a price target of $14 over the next 12 months.
Quantum Computing (QUBT)
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If you’re going to speculate on analyst-backed stocks, you should do it on companies that are plying their trade in industries that are likely to be relevant in the years ahead. That’s the case for Quantum Computing (NASDAQ:QUBT) which – surprise, surprise! – specializes in the namesake industry. Fundamentally, the underlying innovation takes advantage of quantum mechanics in that qubits can exist in multiple states at the same time.
Now, getting into the granularity of the science is beyond the scope of this article. However, it’s suffice to say that by existing in multiple states simultaneously, quantum computers can accelerate the productivity results of classical computers by an exponential scale. And to that effect, Quantum Computing the company offers a rich suite of full-stack quantum solutions. Basically, it’s attempting to secure a foothold ahead of the competition.
For futurists, QUBT represents one of the most compelling analyst-backed stocks. And at time of writing, Quantum Computing represents a legitimate 10-bagger opportunity, with Ascendiant’s Edward Woo pegging an $8.75 price target on the security.
Agenus (AGEN)
OLK Stock. Modern Medical Research Laboratory: Two Scientists Wearing Face Masks use Microscope, Analyse Sample in Petri Dish, Talk. Advanced Scientific Lab for Medicine, Biotechnology. Blue Color. KZR stock. RSLS stock
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Moving into the health-related spectrum of analyst-backed stocks, investors could see life-changing returns. At the same time, they could suffer devastating losses so caution is absolutely warranted. First up, we have Agenus (NASDAQ:AGEN), a Lexington, Massachusetts-based biotech firm focused on immunotherapy, including immuno-oncology. Per its corporate profile, Agenus is developing checkpoint modulators, patient-specific anti-cancer vaccines, and adjuvants designed for use with various vaccines.
Fundamentally, Agenus enjoys a massive total addressable market. According to Grand View Research, the global immunotherapy drugs market size reached a valuation of $110.55 billion in 2021. Further, experts believe this sector could expand at a compound annual growth rate (CAGR) of 6.92% from 2022 to 2030. If so, the ecosystem may print revenue of $200.55 billion.
Of course, the beautiful aspect of Agenus is that the company doesn’t need to dominate the market. It’s a large micro-capitalization play. Instead, it just needs to get an appropriately sized piece of the sector. Analysts also rate shares a unanimous strong buy with a $6.67 average price target.
Passage Bio (PASG)
Biotechnology stocks, biomedical stocks
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Headquartered in Philadelphia, Pennsylvania, Passage Bio (NASDAQ:PASG) has an important directive: to improve the lives of patients with neurodegenerative diseases. It aims to accomplish this task by delivering genetic medicines that will permanently redefine the course of their conditions. Per its website, Passage Bio is currently undergoing a multinational Phase 1/2 clinical trial regarding the safety and efficacy of PBFT02, a gene therapy addressing frontotemporal dementia (FTD).
Further, Mordor Intelligence points out that by year’s end, the neurodegenerative disease therapeutics market could hit $55.12 billion. By 2029, the segment could be worth $77.82 billion, representing a CAGR of 7.14%. Again, as with Agenus, Passage Bio just needs to grab an appropriate share for PASG to swing higher.
To add confidence, PASG ranks among the analyst-backed stocks: a unanimous strong buy with a $10.50 price target.
Palatin Technologies (PTN)
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For those who want to throw the risk-reward profile of analyst-backed stocks to the max, we have Palatin Technologies (NYSEAMERICAN:PTN). Based in Cranbury, New Jersey, Palatin delivers treatments that harness the healing power of the melanocortin system. Per its website, the company discovers and develops novel therapeutics for patients living with inflammatory and autoimmune conditions.
Management notes that chronic inflammation represents a consequence of many diseases. However, current treatments don’t strike the appropriate balance between efficacy, safety and tolerability. Palatin aims to change this paradigm by leveraging its knowledge of the melanocortin system, which regulates blood pressure and influences glucose homeostasis.
According to Straits Research, the anti-inflammatory therapeutics market size reached a valuation of $101.21 billion in 2021. By 2030, this sector could hit $141.58 billion, growing at a CAGR of 3.8%. Again, Palatin is a small enterprise – diminutive in fact. So, a small market share could yield huge gains for PTN.
Finally, analysts rate shares a moderate buy with a $60 target. If you love 14-bagger opportunities, PTN could be one of the analyst-backed stocks for you.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
