Analysts see stupendous upside potential in these two Canadian penny stocks: Frontier Lithium Inc (TSE:FL) and Arizona Sonoran Copper Co Inc (TSE:ASCU). In Canada, penny stocks are defined as those trading at less than C$5. Investing in penny stocks comes with a host of advantages despite them posing the threat of being highly volatile, risky bets. If the company has some good news up its sleeves, the penny stock can skyrocket and produce extraordinary returns. Also, if you invest early enough in a penny stock that has bright future potential, you could make a lucrative long-term investment at a cheaper entry price.
Considering these factors, let us look at two Canadian penny stocks that analysts love. Both these stocks belong to the mining sector and have triple-digit upside potential in the next twelve months, as per analysts.
Frontier Lithium Inc. (TSE:FL)
Frontier Lithium is an early-stage, pre-revenue mineral lithium company focused on the development of its 100%-owned PAK Lithium Project in Ontario. FL aims to produce battery-grade lithium hydroxide and lithium salts for the burgeoning electric vehicle (EV) and energy storage markets in North America. Also, it targets to produce premium mineral concentrates for high quality glass manufacturers.
For the three months ending December 31, 2023, Frontier Lithium reported a net loss of C$0.02 per share, $0.01 better than the prior-year period. On March 2, Frontier Lithium signed a joint venture deal with Japan’s Mitsubishi Corp. to fast-track the development of the PAK Lithium project. In the initial stage, Mitsubishi will buy a 7.5% stake in FL for C$25 million and will increase the ownership to 25% upon meeting certain milestones.
Is Frontier Lithium a Buy or Sell Stock?
With three unanimous Buy ratings, FL stock commands a Strong Buy consensus rating on TipRanks. The average Frontier Lithium share price target of C$2.95 implies a massive 288.2% upside potential from current levels. In the past year, FL stock has lost 63.5% of its value.
Arizona Sonoran Copper Co Inc (TSE:ASCU)
Toronto-based Arizona Sonoran Copper Co is a mineral exploration firm with a 100% interest in the Cactus Project, located southeast of the Phoenix metropolitan area, on private land in Pinal County, Arizona.
ASCU is also a pre-revenue company. For the three months ending December 31, 2023, ASCU recognized a loss of $0.07 per share, $0.02 lower than the prior-year period.
Is ASCU Stock a Buy, Sell, or Hold?
With six unanimous Buys, ASCU stock has a Strong Buy consensus rating on TipRanks. The average Arizona Sonoran Copper Co. share price forecast of C$2.93 implies 118.7% upside potential from current levels. In the past year, ASCU stock has lost nearly 23%.
Ending Thoughts
Penny stocks can prove to be long-term strategic investments if the investment decision is made after thorough research. The above two Canadian penny stocks have more than 100% upside potential over the next twelve months, as per analysts.
