Bank of America Securities analyst Alec Stranahan maintained a Buy rating on Revolution Medicines (RVMD – Research Report) yesterday and set a price target of $78.00.
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Alec Stranahan has given his Buy rating due to a combination of factors that position Revolution Medicines favorably in the market. The recent partnership with Royalty Pharma provides up to $2 billion in non-dilutive funding, which strengthens the company’s financial position and supports its goal of independently commercializing daraxonrasib. This strategic move allows Revolution Medicines to maintain control over its operations without the need for a large pharmaceutical partner, despite significant interest from such entities.
Furthermore, the company’s RAS(ON) franchise continues to demonstrate strong clinical profiles, with promising results from pivotal trials like RASolute 302 and RASolve 301. These trials, along with the flexibility in deal terms with Royalty Pharma, offer Revolution Medicines significant optionality in funding and development. The stock’s current price presents a substantial upside potential, as reflected in the maintained price objective of $78, reinforcing the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $72.00 price target.