TD Cowen analyst Brendan Smith has maintained their neutral stance on RXRX stock, giving a Hold rating today.
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Brendan Smith has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for Recursion Pharmaceuticals. The company has shown promising progress with its new AI models and R-OS2 platform, which are expected to enhance drug development capabilities and foster internal and partner growth. These advancements are anticipated to lead to significant data readouts in the latter half of 2025, which could be pivotal for the company’s future.
However, despite the encouraging revenue growth, particularly from collaboration payments, the substantial increase in R&D expenses raises concerns. The company’s focus on reducing cash burn and operating expenses is crucial, with management aiming for a significant reduction by 2026. While these efforts are steps in the right direction, the need to balance investment in AI and clinical capabilities with financial prudence justifies a Hold rating at this time.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $6.00 price target.