Leerink Partners analyst Andrew Berens maintained a Buy rating on Relay Therapeutics (RLAY – Research Report) on February 27 and set a price target of $14.00.
Andrew Berens has given his Buy rating due to a combination of factors including the strategic focus and progress in Relay Therapeutics’ clinical trials. The company is advancing its Phase 3 ReDiscover-2 trial, which is set to begin in mid-2025, targeting HR+/HER2- advanced breast cancer patients with specific genetic mutations. This trial will compare the efficacy of RLY-2608 combined with fulvestrant against an existing approved regimen, potentially offering a new therapeutic option.
Additionally, Relay Therapeutics is optimizing its research and development efforts by delaying certain early-stage programs to better allocate resources, addressing investor concerns about cash burn. Despite a reduction in the price target from $18 to $14, the company’s substantial cash reserves are expected to support operations through the second half of 2027. However, further equity raises may be necessary to fund ongoing pipeline developments and commercial infrastructure, which Berens considers manageable given the company’s strategic initiatives.
In another report released on February 28, JMP Securities also maintained a Buy rating on the stock with a $12.00 price target.
RLAY’s price has also changed dramatically for the past six months – from $7.140 to $3.250, which is a -54.48% drop .