Recursion Pharmaceuticals price target lowered to $6 from $8 at Jefferies

Jefferies analyst Dennis Ding lowered the firm’s price target on Recursion Pharmaceuticals to $6 from $8 and keeps a Hold rating on the shares. New Phase 2 CCM data showed “an encouraging trend” on MRI at the high 400mg dose and appears to improve with time, but there were no improvements in patient or physician reported outcomes at 12 months, says the firm, which is “framing this as a signal seeking and exploratory study” and notes that Recursion will meet with the FDA to discuss the path ahead. The firm, which initially had assigned 25% odds of success on $2B peak sales for REC-994 in CCM, is lowering its view of the odds to 5% and thus cutting its price target on the shares.