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Aclaris Therapeutics Inc. (NASDAQ:ACRS) is one of the top penny stocks to buy in investors’ stock portfolio. On May 8, Stifel reiterated a Hold rating on Aclaris Therapeutics Inc. (NASDAQ:ACRS) and increased the price target to $4 from $3.

The price target hike underscores the research firm’s optimism about the company’s multi-targeting approaches and its novel immunology biology. The company has made significant progress in developing best-in-class compounds to address various immunological diseases. For starters, it has delivered positive results in the Phase 1a SAD/MAD trial of bispecific antibody ATI-052.

Aclaris is also anticipating top-line results in ongoing Phase 1b proof-of-concept trials or ATI-052. The candidate therapy continues to show potential in the treatment of various atopic immunologic and respiratory diseases. The company is also pursuing the Lichen Planus Development Strategy for ATI-2138, a Potent and Selective Investigational Inhibitor of ITK and JAK3.

Amid pipeline development, Aclaris generated $2 million in revenue in the first quarter, up from $1.5 million in the prior quarter, driven by higher royalties under the Lilly and Sun Pharma license agreements. However, the company incurred a net loss of $19.8 million, compared with $15.1 million in the same quarter last year.

Aclaris Therapeutics, Inc. (NASDAQ:ACRS) is a clinical-stage biopharmaceutical company that discovers, develops, and commercializes innovative drug candidates for immuno-inflammatory diseases and dermatological conditions.

While we acknowledge the potential of ACRS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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