RXRX Should I Buy
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Recursion Pharmaceuticals Inc (RXRX) is not a strong buy for a beginner, long-term investor at this moment. While the company has potential due to its AI-driven drug development platform and a promising pipeline, the current technical indicators, financial performance, and lack of immediate trading signals suggest it is better to wait for more favorable conditions or stronger signals before investing.
The technical indicators are bearish. The MACD histogram is negative and expanding downward, RSI is neutral but close to oversold territory, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 3.586, with resistance at 4.239. Overall, the technical outlook does not support a strong buy signal.
JPMorgan upgraded the stock to Overweight with a price target of $11, citing strong efficacy of REC-4881 and early anti-tumor activity of REC-
The AI drug development sector is projected to grow at 30% annually through
Revenue is forecasted to grow significantly from $62 million in 2025 to $163 million by 2028.
Financial performance in Q3 2025 was weak, with an 80.16% YoY revenue drop and gross margin declining significantly.
The company faces profitability and competition risks in the AI drug development sector.
Technical indicators suggest a bearish trend, and no strong trading signals are present.
In Q3 2025, revenue dropped by 80.16% YoY to $5.175 million. Net income improved to -$162.25 million (up 69.29% YoY), and EPS increased to -0.36 (up 5.88% YoY). However, gross margin dropped significantly to -183.81%, indicating operational inefficiencies.
JPMorgan upgraded RXRX to Overweight from Neutral with a price target increase to $11 from $10. The firm sees blockbuster potential for REC-4881 and early promising results for REC-617, with peak sales projected at over $1 billion and a 60% probability of success.
