In a report released today, Alec Stranahan from Bank of America Securities reiterated a Hold rating on Recursion Pharmaceuticals (RXRX – Research Report), with a price target of $8.00.
Alec Stranahan has given his Hold rating due to a combination of factors impacting Recursion Pharmaceuticals. The company recently announced a strategic shift by deprioritizing several pipeline programs and pausing another, which led to a significant drop in their stock price. This decision reflects a logical reprioritization following their merger with Exscientia, but it also delays the potential derisking of their platform.
Additionally, while preliminary data from the REC-4881 trial in familial adenomatous polyposis shows promise, further follow-up is necessary to confirm its durability and safety. The partnerships, such as the one with Sanofi, are progressing, but the overall catalyst flow has diminished, and many remaining assets are still in early-stage studies. These factors contribute to the cautious outlook, leading to the reiteration of a Neutral rating and an adjusted price objective.
Stranahan covers the Healthcare sector, focusing on stocks such as Novavax, TG Therapeutics, and Candel Therapeutics. According to TipRanks, Stranahan has an average return of -10.2% and a 41.15% success rate on recommended stocks.