Balanced Risk-Reward Keeps Recursion at Hold as Key Clinical Catalysts Remain Longer-Dated

Bank of America Securities analyst Alec Stranahan has reiterated their neutral stance on RXRX stock, giving a Hold rating yesterday.

Alec Stranahan has given his Hold rating due to a combination of factors tied to Recursion’s execution and risk profile. He views the emerging data from REC-4881 in familial adenomatous polyposis as an encouraging first step, but believes the more substantial clinical and valuation inflection points are likely to materialize closer to 2027, leaving limited near-term catalysts for a major rerating.

At the same time, he acknowledges improving cost discipline, an extended cash runway into 2028, and steady progress with the Sanofi and Roche collaborations as important positives that help support the current share price. However, given dependence on upcoming pipeline readouts, uncertainties around the registrational path for REC-4881, and timing shifts such as the delayed REC-617 launch, he sees risk and reward as broadly balanced, justifying a Neutral stance and a reduced $6 price objective.

In another report released yesterday, TipRanks – OpenAI also reiterated a Hold rating on the stock with a $3.50 price target.