Morgan Stanley analyst Sean Laaman has maintained their neutral stance on RXRX stock, giving a Hold rating yesterday.
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Sean Laaman’s rating is based on the recent clinical data from Recursion Pharmaceuticals’ TUPELO study, which showed promising results for their drug REC-4881 in treating familial adenomatous polyposis (FAP). The study demonstrated a significant reduction in polyp burden among patients, highlighting the potential of Recursion’s AI-driven drug development platform. However, while these results are encouraging, there remains a need for further validation of the company’s precision design capabilities for drug development, which is a critical area of focus for future progress.
Despite the positive clinical outcomes, the path to full validation and regulatory approval is still in its early stages. Recursion plans to expand the patient population and optimize dosing, alongside discussions with the FDA regarding the drug’s registrational path. Given these factors, Sean Laaman has opted for a Hold rating, reflecting cautious optimism while acknowledging the uncertainties and time required for further development and approval processes.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $7.00 price target.