RXRX, FTNT, MRK, RIVN, PYPL Trending With Analysts

Analysts are intrested in these 5 stocks: ( (RXRX) ), ( (FTNT) ), ( (MRK) ), ( (RIVN) ) and ( (PYPL) ). Here is a breakdown of their recent ratings and the rationale behind them.

Recursion Pharmaceuticals has moved back into the spotlight as J.P. Morgan analyst Priyanka Grover upgraded the stock to Buy, backing an ambitious view on its AI-driven drug discovery platform. The core of the bullish case is REC-4881, a MEK 1/2 inhibitor for Familial Adenomatous Polyposis (FAP), which has shown strong and durable responses in the TUPELO trial and already secured orphan drug exclusivity. Grover now sees blockbuster potential with over $1 billion in peak U.S. sales, assigning a 60% probability of success and setting a December 2026 price target of $11 per share. A second key asset, REC-617 for platinum‑resistant ovarian cancer, carries estimated peak U.S. sales of $750 million with a 40% probability of success, and early data have shown encouraging anti‑tumor activity. While the company still generates negative operating cash flow and trades on future expectations rather than profits, its growing pipeline validation and over $500 million already booked from pharmaceutical partnerships underpin a DCF‑based valuation that assumes both late‑stage products and milestone‑rich collaborations will drive long‑term upside.

Fortinet, by contrast, is drawing a more cautious tone as J.P. Morgan’s Brian Essex downgraded the cybersecurity vendor to Sell, arguing it is “at risk of getting lapped” in the race to become a dominant security platform. Although Fortinet is still expected to post solid near‑term results helped by an industry‑wide firewall replacement cycle, Essex warns that 2026 and beyond could look far tougher as spending shifts away from traditional hardware toward cloud‑centric and Zero Trust–driven SASE architectures. Recent surveys cited in the report indicate Fortinet has relatively weak recognition as a full platform compared with larger rivals, its SASE business is heavily dependent on upselling its own SD‑WAN base rather than winning greenfield deals, and its SecOps offerings are rarely ranked among partners’ top vendors. With customers using refresh events to reconsider vendors, and price increases creating new competitive headwinds, the analyst believes Fortinet will be forced to rely on hardware share gains in a segment that is losing strategic importance. The new December 2026 price target is cut to $75 from $85, based on a valuation multiple more in line with slower‑growth peers, reflecting what Essex sees as structural challenges to Fortinet’s long‑term growth story despite healthy cash generation today.

Merck & Co. is seeing sentiment turn in its favor, with BMO Capital Markets’ Evan Seigerman upgrading the pharma giant to Buy on rising confidence that the company can grow through the looming loss of exclusivity for cancer blockbuster Keytruda. The analyst argues that while the “story is unfinished,” Merck has already assembled a portfolio capable of replacing about 90% of Keytruda’s peak sales by the mid‑2030s, leaning on both internal R&D and business development. In the nearer term, Seigerman expects commercial outperformance from drugs such as Enflonsia, Reblozyl and Welireg, alongside improving investor mood after Gardasil finally beat expectations in the third quarter of 2025 following a long stretch of disappointments in China. He also highlights important 2026 catalysts, including Phase 2 CADENCE data for sotatercept in pulmonary hypertension and HIV trial readouts that could position islatravir as part of a weekly oral regimen with Gilead’s lenacapavir. Even assuming some pressure on Merck’s valuation multiple as Keytruda approaches its 2028 patent cliff, the new $130 price target suggests notable upside from around $100 per share, with the analyst viewing current expectations as conservative and leaving room for further upside if new deals or better‑than‑expected clinical progress emerge.

Rivian Automotive is entering what Baird analyst Ben Kallo calls “the year of the R2,” prompting an upgrade to Buy on expectations that 2026 will mark a pivotal new product cycle for the electric vehicle maker. The mid‑2026 launch of the R2 SUV from Rivian’s Normal, Illinois plant is central to the thesis, as it should move the brand into a lower price bracket around $45,000, opening up a much larger addressable market and potentially accelerating demand. Kallo believes that with EV tax credit uncertainties largely behind the sector, generalist investors may return to the story as R2 deliveries ramp in the back half of 2026 and fleet deals for Rivian’s commercial van (RCV) add further upside. Liquidity, a key concern for many EV startups, looks more manageable with $7.1 billion of cash at the end of the third quarter, access to a $6.6 billion Department of Energy loan to fund the Georgia plant, and additional capital expected from a joint venture with Volkswagen as technology milestones are met. Reflecting higher conviction in Rivian’s growth and brand strength, Baird lifts its price target to $25 from $14, valuing the company at a premium multiple to both legacy automakers and EV peers on the view that this is still a long‑duration, high‑growth story—albeit a speculative one.

PayPal Holdings is facing a much colder reception, with Morgan Stanley’s James Faucette downgrading the payments pioneer to Sell amid mounting worries that its core branded checkout business is slowly eroding. The report describes PayPal as a “melting ice cube,” arguing that technical and strategic fixes to its online checkout integrations will be slow and complex, limiting its ability to regain lost share to newer rivals and seamless alternatives embedded directly into merchant platforms. Faucette forecasts sluggish total payment dollar growth through 2028, driven by ongoing share loss, pressure on take rates as competition intensifies, and continued under‑monetization of Venmo despite its large user base. The bank also warns that the current market enthusiasm around “agentic” AI‑driven finance tools could become an overhang if PayPal is seen as lagging in translating AI narratives into tangible competitive advantages and earnings. With margins and earnings estimates revised down and few near‑term catalysts to change the story, Morgan Stanley cuts its rating to Underweight with a $51 price target, signaling that investors may find better risk‑reward elsewhere in the booming payments and fintech landscape.