Recursion Pharmaceuticals (RXRX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Mani Foroohar from Leerink Partners maintained a Hold rating on the stock and has a $3.00 price target.
Mani Foroohar has given his Hold rating due to a combination of factors impacting Recursion Pharmaceuticals. The company’s recent decision to discontinue its most advanced programs, including NF2, CCM, and C. difficile, has raised concerns about its ability to produce differentiated clinical assets. This decision, coupled with a significant cash burn guidance of up to $450 million for FY25, has led to a cautious outlook on the stock.
Furthermore, the integration with Exscientia and the return on investment for combined R&D and platform investments are under scrutiny. While there is potential for positive surprises from collaboration milestones, the lack of near-term revenue visibility and the need for cost control in platform infrastructure pose challenges. These factors, along with the risk of dilution from opportunistic equity financing, contribute to the Hold rating, as the company navigates its strategic focus on partnership monetization and cash management.
In another report released on May 5, Bank of America Securities also maintained a Hold rating on the stock with a $8.00 price target.
RXRX’s price has also changed dramatically for the past six months – from $6.970 to $4.155, which is a -40.39% drop .