Analyst Gil Blum of Needham maintained a Buy rating on Recursion Pharmaceuticals (RXRX – Research Report), retaining the price target of $11.00.
Gil Blum has given his Buy rating due to a combination of factors that highlight Recursion Pharmaceuticals’ strong position in the Techbio sector. The company is recognized for its broad capabilities and extensive internal data generation, which positions it as a leader in the field. Recursion’s strategic use of AI-based ‘virtual cell’ models is expected to become a key driver in drug development, enhancing their hypothesis generation process.
Additionally, the company has a solid financial foundation, ending the year with $603 million in cash, which is projected to support operations until 2027. The potential for opt-in and milestone payments from collaborations with major pharmaceutical partners could add significant value in the coming years. While upcoming clinical readouts are anticipated to be incremental, they are crucial for validating Recursion’s platform, supporting the overall positive outlook for the stock.
Blum covers the Healthcare sector, focusing on stocks such as Geron, Sarepta Therapeutics, and Cartesian Therapeutics. According to TipRanks, Blum has an average return of -11.4% and a 31.59% success rate on recommended stocks.