Recursion Pharmaceuticals: A Buy Rating with Growth and Innovation on the Horizon

Analyst Gil Blum from Needham maintained a Buy rating on Recursion Pharmaceuticals (RXRX – Research Report) and keeping the price target at $17.00.

Gil Blum has given his Buy rating due to a combination of factors that are indicative of Recursion Pharmaceuticals’ potential for growth and value creation. The upcoming Phase II CCM readout, which is on schedule for the third quarter of 2024, is a significant milestone for the company. Positive outcomes in terms of objective measures, such as lesion size reduction, or improvements in quality of life (QoL) for patients, would be beneficial. Moreover, finding correlations between these objective measures and QoL improvements could prove to be highly consequential for the company’s valuation and clinical validation of its approach.
Additionally, the expansion of Recursion’s platform through the integration of non-oncology genomics and patient record data, akin to the services provided by Tempus, suggests a broadening of its data analytics capabilities. This is further bolstered by a new collaboration with Helix and the adoption of ‘active learning’ techniques, which aim to enhance the efficiency of mapping biological relationships by reducing the number of experiments needed. The successful overhaul of its computing infrastructure with the launch of BioHive-2, along with a robust cash position of $296 million at the end of the first quarter of 2024, underpins the company’s solid financial footing and supports continued investment in its innovative technologies. These factors collectively underlie Blum’s optimism and the maintenance of the Buy rating and $17 price target.

According to TipRanks, Blum is a 4-star analyst with an average return of 3.6% and a 41.33% success rate. Blum covers the Healthcare sector, focusing on stocks such as Geron, Rocket Pharmaceuticals, and G1 Therapeutics.

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Recursion Pharmaceuticals (RXRX) Company Description:

Recursion Pharmaceuticals Inc is a clinical-stage biotechnology company. It is decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering, with the goal of radically improving the lives of patients and industrializing drug discovery.