TD Cowen analyst Brendan Smith has maintained their neutral stance on RXRX stock, giving a Hold rating on November 1.
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Brendan Smith’s rating is based on a combination of factors that highlight both the progress and challenges faced by Recursion Pharmaceuticals. The company has made significant advancements in its platform during the third quarter, reaffirming its financial guidance for fiscal years 2025 and 2026. Additionally, the recent ATM draw is expected to support the company’s cash runway through 2027, providing a stable financial outlook.
Despite these positive developments, the Hold rating reflects a cautious stance due to the upcoming transition in leadership as Dr. Najat Khan prepares to take over as CEO. While Dr. Khan’s expertise in healthcare AI is promising, the market is awaiting further clarity on the company’s strategic direction post-transition. Furthermore, while the initial safety data for REC-617 is encouraging, the company is still in the early stages of its clinical trials, with significant milestones expected in the coming years. These factors collectively contribute to a Hold rating as investors await more concrete results and strategic updates.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5.50 price target.