10 Best Fundamentally Strong Penny Stocks to Invest In

7) Morgan Advanced Materials plc (OTC:MCRUF)

Stock Price as of 4 November: $3.22

3-Year Revenue Growth: ~8.2%

3-Year Net Income Growth: ~18.04%

Average Upside Potential: 13.7%

Number of Hedge Fund Holders: N/A

Morgan Advanced Materials plc (OTC:MCRUF) is a materials technology company. It is engaged in the engineering of ceramics, carbon, and composites. The company operates via Thermal Products, and Carbon and Technical Ceramics divisions.

Wall Street analysts remain optimistic about Morgan Advanced Materials plc (OTC:MCRUF)’s differentiated positions in the faster-growing markets including semiconductors, healthcare, clean energy, and clean transportation as well as across its core markets which the company expects to grow strongly. This will support its strong organic revenue and profit growth. Morgan Advanced Materials plc (OTC:MCRUF), in its August 2024 investor presentation, highlighted its expectations of organic growth, which should be towards the higher end of the 4%-7% range over the upcoming 4 years.

The company’s margins remain well-underpinned and should progress towards the top of its 12.5%-15% range. Therefore, Morgan Advanced Materials plc (OTC:MCRUF) remains well-placed for a period of strong organic growth, supplemented by bolt-on acquisitions. Industry experts continue to see strong demand for the company’s products which support its wide-band-gap power semiconductor market, driven by the clean energy and clean transportation. Morgan Advanced Materials plc (OTC:MCRUF) anticipates that conventional semiconductor market should grow strongly over the upcoming few years as and when digitisation progresses further and AI demand grows.

Moving forward, the experts believe that organic revenue, continuing profit growth and accretive M&A should form base for the significant EPS growth. Also, there is optimism around Aerospace market amidst the recovery and expansion of air travel. These factors, together with delivery of new and more efficient aircraft and engine models, should fuel demand for Morgan Advanced Materials plc (OTC:MCRUF)’s consumable products.

As per Wall Street analysts, the shares of Morgan Advanced Materials plc (OTC:MCRUF) have an average price target of $3.66.