Penny shares have a well-earned reputation for danger. For every one that skyrockets, several more quietly disappear.
But for investors who can spot the winners, some enormous gains can be unlocked by investing early. And right now, two UK penny shares are attracting serious institutional attention, both with the potential to more than double.
Here’s what analysts are seeing.
A build-to-rent specialist with 261% upside?
Watkin Jones (LSE:WJG) is a property developer specialising in purpose-built student accommodation and build-to-rent housing, which are two of the most structurally-undersupplied residential categories in the UK.
The shares trade at around 20p today. But when looking at the latest institutional forecasts, the experts are projecting the stock should be priced close to 70.5p. That’s a potential upside of 261% over the next 12 months!
That’s a pretty bullish consensus. So what’s behind this explosive confidence?
Watkin Jones entered 2026 with £340m of secured revenue already on the books, up from £292m the prior year. This came paired with a development pipeline of around £2bn in gross development value. In other words, the future work’s already there.
The problem is, the higher interest rate environment has created some powerful cyclical headwinds holding the business back. Revenue fell 23% in 2025 to £279.8m as transactional activity in the institutional property market remained thin. And with concerns that things will continue to get worse in the near term, investors are seemingly rushing for the exits.
However, while the exact timeline remains a mystery, when the tide starts to turn, Watkin Jones appears nicely positioned for a major rebound. And it explains why the share price targets are so bullish today.
A construction distributor with 83% upside?
BRCK Group‘s (LSE:BRCK) a leading distributor of specialist building materials and services to the UK construction industry. And it’s another penny share that’s grabbed the attention of institutional investors.
The team at Canaccord Genuity has issued a Buy recommendation with a share price target of 106p. That’s about 107% higher than where the shares are trading today. So what’s behind this forecast?
The bull case rests on two things:
- UK Housing Recovery – if planning reforms and government housebuilding targets start to translate into actual construction starts, BRCK’s core bricks and building materials division should see meaningful volume growth.
- Fire Remediation – the contracting division surged 69.4% in 2025, driven by building safety legislation requiring widespread cladding and facade remediation across the country.
However, like Watkin Jones, there’s a genuine bear case to be made. Pre-tax profit fell 45% in 2025 to £11.7m despite the revenue increase, driven by higher costs, impairment charges, and finance expenses.
That’s bad news for any business. But the situation’s made worse by the firm’s £60.5m net debt. And just like Watkins Jones, BRCK Group’s recovery is ultimately tied to UK housing market conditions.
The bottom line
Both of these penny shares are deeply unloved for real reasons. But both also carry serious institutional conviction.
That’s why for adventurous investors, these companies might be worth a closer inspection. But for me, I prefer to invest in businesses that have more control over their destiny. That’s why I’m looking for other opportunities within the realm of penny shares.
Should you invest £5,000 in BRCK Group right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BRCK Group made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.
