Mani Foroohar, an analyst from Leerink Partners, reiterated the Hold rating on Recursion Pharmaceuticals (RXRX – Research Report). The associated price target was raised to $4.00.
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Mani Foroohar has given his Hold rating due to a combination of factors influencing Recursion Pharmaceuticals’ current financial and strategic position. The company recently announced a significant workforce reduction and provided guidance on cash burn for the fiscal years 2025 and 2026, which extends their financial runway into the fourth quarter of 2027. This decision follows a strategic pipeline cleanse, where Recursion discontinued its most advanced assets, aligning with management’s focus on reducing cash burn through various means, including headcount reduction and opportunistic equity financing.
While these measures are steps in the right direction, the focus remains on the company’s ability to manage cash burn effectively, with significant clinical data expected in 2026 and beyond. The Hold rating reflects caution regarding Recursion’s reliance on executing business development deals and recognizing milestones to support its operating system and mitigate the dilutive effects of continuous ATM use. The company’s ability to fulfill partnership commitments while managing its operational footprint will be crucial in determining its future financial health.
In another report released on June 10, Bank of America Securities also maintained a Hold rating on the stock with a $8.00 price target.
RXRX’s price has also changed moderately for the past six months – from $7.460 to $5.450, which is a -26.94% drop .