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Recently, I scanned the market for penny shares that are currently trading well below analysts’ average share price targets. I thought this could be a good way to discover some lucrative investment opportunities.
Below, I’m going to highlight three stocks that came up on my screen. If analysts are right, these penny shares could be set to soar.
An AI play
First up, we have Made Tech (LSE: MTEC). It’s a small tech company that’s helping the UK government with digital transformation (data, automation, AI, etc)
At present, it trades for around 38p. However, the average analyst price target is 60p – 58% higher.
I think this stock could be worth a closer look. Because it appears to offer a nice combination of growth and value right now.
This financial year (ending 31 May), revenue is expected to grow 19%. The valuation isn’t high though – the forward-looking price-to-earnings (P/E) ratio is only 15.
Of course, a risk is a cutback on tech spending by the UK government. This could see growth slow.
A trading update in December was very encouraging, however. Trading was better than expected and management said that it was “optimistic” and “confident” in relation to the outlook.
A pizza chain trading at a discount
Next, we have DP Poland (LSE: DPP). It operates the Domino’s Pizza chain in Poland and Croatia.
It currently trades for around 7.6p. Yet the average price target is 14p – about 84% higher.
This is another company that could be worthy of further research. Because like Made Tech, it appears to offer both growth and value.
Last year, the company delivered group system sales growth of 11.3%, so it’s growing at a healthy rate. As for the valuation, it currently sports a price-to-sales ratio of just 1.1 – well below the ratio of 2.6 that US-listed Domino’s Pizza has today.
It’s worth noting that DP Poland hasn’t been profitable up to now. So, it’s higher up on the risk spectrum.
I see potential, however. With the company shifting to a franchise-led, capital-light model, there’s plenty of room for profit (and share price) growth.
A takeover target?
Last but not least we have Corero Network Security (LSE: CNS). This is a small UK cybersecurity company that specialises in Distributed Denial of Service (DDoS) protection. A DDoS attack is an attempt to disrupt a server, service, or network by overwhelming it with a flood of internet traffic.
The share price here is 12p. Yet the average analyst price target is 19p – about 58% higher.
This stock has been a poor performer over the last year or so. And at current levels, I think it’s worth checking out.
In January, the company posted a strong trading update in which it advised that it experienced positive trading momentum throughout the second half of 2025. Encouragingly, annualised recurring revenues (ARR) increased 23% to $23.9m, signalling high demand for its cybersecurity solutions.
It’s worth pointing out that competition from larger players in the industry is a risk here. That said, the cybersecurity industry is experiencing a period of consolidation right now and I wouldn’t be surprised if this company was to attract takeover interest.
