Does excessive danger imply excessive reward? Not essentially, so say the professionals on Wall Avenue. Particularly citing penny shares, or shares that commerce for lower than $5 per share, analysts advise warning as these names may nonetheless be within the early innings, or it might be that they face an uphill battle that’s simply too steep.Luring buyers with their discount worth tags, these shares could be up in opposition to overpowering headwinds or have weak fundamentals.Nevertheless, analysts argue there are early-stage corporations that mirror promising alternatives, with the low share costs which means you get considerably extra bang on your buck. What’s extra, even what looks like minor share worth appreciation can lead to large share beneficial properties.The underside line? Not all danger is created equal. To this finish, the professionals suggest performing some due diligence earlier than investing determination.With this in thoughts, we turned to funding agency Roth Capital for some inspiration. The agency’s analysts have pinpointed three compelling penny shares, noting that every may climb over 100% greater within the 12 months forward. Utilizing TipRanks’ database, we came upon what makes all three such thrilling performs even with the danger concerned. CohBar (CWBR)Targeted on growing mitochondria-based therapeutics (MBTs), CohBar needs to seek out new therapies for ailments related to growing older and metabolic dysfunction. Based mostly on the power of its know-how and its $0.96 share worth, Roth Capital thinks that now’s the time to drag the set off.Writing for the agency, analyst Elemer Piros factors out that CWBR was in a position to flip over 100 mitochondrial peptides into 1,000 mitochondrial-based therapeutics (MBT). Firm scientists and researchers from around the globe have discovered that mitochondrial peptides regulate a number of physiological programs, together with danger components which result in cardiovascular and neurodegenerative ailments, weight problems, diabetes, fatty liver illness fibrotic and inflammatory situations and most cancers.It ought to be famous that peptides are both frequently or intermittently launched to modulate organic features, nevertheless it’s troublesome to ship them as therapies. Moreover, additionally they are inclined to have shorter half-lives. “CohBar developed strategies to change peptides and plan to make use of modified analogues for medical improvement,” Piros commented.Up first for CWBR is CB4211, its optimized analog of the MOTS-c mitochondrial-derived peptide. The corporate’s first medical candidate is wrapping up a Section 1b trial in sufferers with fatty liver illness. In response to administration, there are 10 sufferers who can be randomized for remedy with CB4211 and 10 for placebo, with the outcomes anticipated in Q1 2021.Nonalcoholic Fatty Liver Illness (NAFLD) is a situation outlined by extreme fats accumulation within the type of triglycerides (steatosis) within the liver in people who devour little or no alcohol. What’s extra, the corporate can even goal non-alcoholic steatohepatitis (NASH), which is probably the most extreme type of NAFLD.Piros acknowledges that competitors within the house is fierce, however says “no winners could be recognized, but.” Expounding on this, the analyst acknowledged, “CB4211 provides a but unexplored mechanism of motion, which is foundational, primarily based on the pure management of homeostasis, which is misplaced because of environmental or genetic insults. The compound was derived from naturally occurring mitochondrial peptides, with the aim of restoring, rebalancing homeostasis with the aim of reversing illness processes.”Based mostly on the above, Piros sees a horny danger/reward in CWBR shares. “[We] worth CohBar primarily based on a comparable universe of early- to mid-stage corporations with platforms that might yield a number of drug candidates. The common enterprise worth of this group of corporations is $268MM vs. CohBar at $38MM. We venture that CohBar shares may commerce in keeping with the typical,” the analyst concluded.To this finish, Piros charges CWBR a Purchase together with an $8 worth goal. Ought to his thesis play out, a possible twelve-month achieve of 741% might be within the playing cards. (To observe Piros’ observe report, click on right here)General, CWBR has a small, however vocal camp of bullish analysts with constructive expectations for its inventory. Out of the two analysts polled by TipRanks, each price the inventory a Purchase. With a return potential of 557%, the inventory’s consensus worth goal stands at $6.25. (See CWBR inventory evaluation on TipRanks)Eyenovia (EYEN)By using its patent piezo-print supply know-how, Eyenovia is growing a pipeline of micro-dose therapeutics. With shares altering palms for $3.41 apiece, Roth Capital sees a horny entry level for buyers.In October, Eyenovia introduced that an affiliate of Bausch Well being Corporations had acquired an unique license within the U.S. and Canada for the investigational microdose formulation of atropine ophthalmic resolution (MicroPine), designed for the discount of myopia development in kids aged 3-12. MicroPine, which is delivered by way of EYEN’s proprietary Optejet dispenser, is progressing via Section 3, with the launch doubtlessly coming in 2025.As per the phrases of the settlement, Bausch will assume the oversight and bills associated to the continuing Section 3 CHAPERONE trial. In flip, Eyenovia will obtain a $10 million upfront fee and as much as $35 million in approval and launch-based milestones, together with royalties starting from mid-single digit to mid-teen percentages of gross revenue on gross sales within the U.S. and Canada.Roth Capital’s Jonathan Aschoff tells purchasers that “the deal validates the know-how and the market.” He provides that this settlement and the latest Asian MicroPine take care of Arctic Imaginative and prescient, “mixed with the roughly $25 million in R&D financial savings for EYEN that these two offers present, ought to enhance EYEN’s money move by about $100 million over the subsequent a number of years.” To this finish, he argues that the corporate’s money place ought to help its operations into 1H22.On high of this, assuming there aren’t any COVID-related delays, Aschoff believes EYEN ought to be capable of provoke each Section 3 VISION trials for MicroLine, its piezo-formulation of pilocarpine designed to exchange studying glasses for 3 to 4 hours whereas addressing instillation and tolerability points related to conventional eye drops, by YE20. Which means that trials will be capable of enroll in a couple of weeks, and the outcomes might be revealed in 2021.If that wasn’t sufficient, the corporate is planning to file the MicroStat (its mydriasis candidate) NDA by YE20, with the U.S. launch doubtlessly coming in late 2021. “MicroStat commercialization ought to be aided by the present pandemic, provided that physicians are extra reluctant that ever earlier than to reuse the identical eyedropper for a number of sufferers, and with reuse usually encompassing about 20-30 sufferers, the eyedropper simply turned about 20-30 instances dearer for the doctor,” Aschoff defined.It ought to come as no shock, then, that Aschoff left a Purchase score and $11 worth goal on the inventory. Given this goal, shares may soar 223% within the subsequent 12 months. (To observe Aschoff’s observe report, click on right here)Wanting on the consensus breakdown, 2 Buys and no Holds or Sells have been issued within the final three months. Due to this fact, EYEN will get a Average Purchase consensus score. Based mostly on the $8.50 common worth goal, shares may achieve 150% within the coming months. (See EYEN inventory evaluation on TipRanks)Boqii Holding (BQ)Final however not least now we have Boqii Holding, which operates the biggest on-line platform for pet merchandise in China, with its major concentrate on on-line retail via third-party Chinese language on-line platforms and its personal e-commerce website (Boqii Mall). At present going for $4.45 apiece, Roth Capital believes its share worth presents an opportunity to get in on the motion.Representing the agency, analyst Darren Aftahi instructed purchasers, “BQ represents an early-stage alternative for buyers to achieve publicity to China’s main ecosystem for all issues pets, which uniquely blends ‘neighborhood’ and ‘commerce’ into an omni-channel, verticalized on-line and offline platform.”A part of what makes BQ so compelling is that though it primarily operates as an e-commerce firm, it boasts an omni-channel, verticalized platform for pet merchandise, in Aftahi’s opinion. Moreover, the corporate has built-in into offline channels like pet shops and hospitals. The analyst argues this not solely expands the buyer entry factors, however the on-line neighborhood additionally retains customers engaged with numerous types of content material and advertising, “enhancing total platform worth to finish clients.”In response to Frost & Sullivan, China’s pet inhabitants progress is projected to be among the many quickest over the subsequent a number of years, with it anticipated to match U.S. possession (400 million pets) by 2024 from roughly one-third that price presently. “We imagine BQ can see accelerated progress once we layer on the continued adoption of e-commerce spend, with on-line pet retail spend anticipated to succeed in 52% of whole pet retail by 2024,” Aftahi commented.It ought to be famous that over 60% of gross sales come from BQ shops on third-party websites like Tmall, JD.com and Pinduoduo, which Aftahi thinks “broadens BQ’s model attain.”Providing additional clarification, the analyst acknowledged, “These websites are sometimes the preliminary touchpoint, and customers can then be funneled into BQ’s on-line neighborhood for re-targeting, giving BQ an higher hand in buyer possession. In our view, BQ is about to seize progress from the shift to e-commerce, diversified throughout entry factors, however underneath the BQ model regardless.”All the pieces that BQ has going for it prompted Aftahi to maintain his Purchase score as is. Together with the decision, he leaves the value goal at $10, suggesting 123% upside potential. (To observe Aftahi’s observe report, click on right here)With regards to different analyst exercise, it has been quiet. As Aftahi is the one analyst that has revealed a overview just lately. (See BQ inventory evaluation on TipRanks)To search out good concepts for penny shares buying and selling at engaging valuations, go to TipRanks’ Finest Shares to Purchase, a newly launched instrument 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 individual evaluation earlier than making any funding.