Analyst Robert Burns from H.C. Wainwright reiterated a Buy rating on Relay Therapeutics (RLAY – Research Report) and keeping the price target at $16.00.
Robert Burns has given his Buy rating due to a combination of factors surrounding Relay Therapeutics’ promising clinical trial results and strategic positioning. The Phase 1 ReDiscover trial involving RLY-2608 in combination with Faslodex demonstrated encouraging outcomes in patients with PIK3CA-mutant, HR+/HER2- metastatic breast cancer. The trial showed a notable overall response rate and progression-free survival, particularly among patients with kinase mutations, which suggests a competitive edge over existing treatments.
Furthermore, the selective nature of RLY-2608 resulted in a lower incidence of severe side effects, enhancing its potential as a safer treatment option. Relay Therapeutics’ plans to initiate a pivotal trial comparing RLY-2608 + Faslodex against Truqap + Faslodex also highlight its strategic approach to capturing market share. These factors, coupled with the recent acquisition of a competing PI3Kα inhibitor by Eli Lilly, position Relay Therapeutics favorably in the oncology market, justifying the Buy rating.
Burns covers the Healthcare sector, focusing on stocks such as Exelixis, Cogent Biosciences, and Oric Pharmaceuticals. According to TipRanks, Burns has an average return of -20.4% and a 25.40% success rate on recommended stocks.
In another report released on February 28, JMP Securities also maintained a Buy rating on the stock with a $12.00 price target.
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