Alec Stranahan, an analyst from Bank of America Securities, maintained the Hold rating on Recursion Pharmaceuticals. The associated price target is $7.00.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge-fund level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Alec Stranahan has given his Hold rating due to a combination of factors related to Recursion Pharmaceuticals’ recent data release on their REC-4881 asset. The data showed promising results in reducing polyp burden in patients with familial adenomatous polyposis (FAP), surpassing the benchmark set by competitors. However, despite these positive outcomes, there are still significant uncertainties regarding the path to registration and the safety profile, particularly as the company targets a younger demographic.
While the durability of the treatment effect is encouraging, with a notable reduction in polyp burden even after the treatment period, there remain concerns about the safety and tolerability of the drug, as indicated by the observed adverse events. The discontinuation and dose interruption rates are also points of concern as the company plans to expand its trials. Additionally, the debate on the registrational path and the need for further validation of the platform contribute to the cautious outlook, justifying the Hold rating until more definitive progress is made.
In another report released on December 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $4.50 price target.