Encouraging Clinical Data: Recursion Pharmaceuticals (RXRX) reported positive Phase 1b/2 TUPELO data for its FAP drug candidate REC-4881, which has influenced investor sentiment despite recent insider selling and a CEO transition.
Stock Performance and Valuation: The stock is currently priced at $4.26, reflecting a 29.35% decline over the past year, yet it is trading at a 35% discount to analyst targets, suggesting potential undervaluation with a fair value estimated at $7.
Market Positioning: Recursion is positioned to benefit from the pharmaceutical industry's shift towards AI-driven drug discovery and clinical development, which could enhance its market share and long-term earnings potential.
Investment Risks: The optimistic outlook could be jeopardized by stalled pharma collaborations or disappointing clinical results, which may lead to extended timelines and increased cash burn.
Wall Street analysts forecast RXRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RXRX is 7.75 USD with a low forecast of 5.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast RXRX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RXRX is 7.75 USD with a low forecast of 5.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 4.640
Low
5.00
Averages
7.75
High
11.00
Current: 4.640
Low
5.00
Averages
7.75
High
11.00
JPMorgan
Neutral -> Overweight
upgrade
$10 -> $11
Al Analysis
2025-12-17
Reason
JPMorgan
Price Target
$10 -> $11
Al Analysis
2025-12-17
upgrade
Neutral -> Overweight
Reason
JPMorgan upgraded Recursion Pharmaceuticals to Overweight from Neutral with a price target of $11, up from $10. The firm says the company's REC-4881 has shown "strong and durable" efficacy in familial adenomatous polyposis. REC-4881's addressable market is now broader than previously expected, creating blockbuster potential, the analyst tells investors in a research note. JPMorgan sees peak sales of over $1B and a 60% probability of success. In addition, Recursion's REC-617, a CDK7 inhibitor, has shown early anti-tumor activity in platinum-resistant ovarian cancer, says JPMorgan.
Morgan Stanley
Equal Weight
initiated
$5
2025-07-03
Reason
Morgan Stanley
Price Target
$5
2025-07-03
initiated
Equal Weight
Reason
Morgan Stanley assumed coverage of Recursion Pharmaceuticals with an Equal Weight rating and $5 price target. Recursion has faced volatility due to a combination of macroeconomic factors, underperformance on initial clinical results and uncertainty on valuation and revenue drivers, the analyst tells investors in a research note. The recent pipeline prioritization and stage of clinical development for the proprietary pipeline leaves several open questions on valuation, the analyst tells investors in a research note.
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Morgan Stanley
Equal Weight
downgrade
$8 -> $5
2025-06-17
Reason
Morgan Stanley
Price Target
$8 -> $5
2025-06-17
downgrade
Equal Weight
Reason
Morgan Stanley lowered the firm's price target on Recursion Pharmaceuticals to $5 from $8 and keeps an Equal Weight rating on the shares. The firm revised its model following the company's recent pipeline prioritizations, cost reductions, 20% workforce reduction and updated cash burn guidance.
Morgan Stanley
Vikram Purohit
Hold
Maintains
$10 → $8
2025-04-10
Reason
Morgan Stanley
Vikram Purohit
Price Target
$10 → $8
2025-04-10
Maintains
Hold
Reason
Morgan Stanley lowered the firm's price target on Recursion Pharmaceuticals to $8 from $10 and keeps an Equal Weight rating on the shares. The firm updated its model based on commentary through Q4 earnings and following the recent opportunity it had to catch-up with management on the current status of the pipeline, the analyst tells investors.
About RXRX
Recursion Pharmaceuticals, Inc. is a clinical-stage TechBio company decoding biology and chemistry to industrialize drug discovery. Its Recursion Operating System (OS), a platform built across diverse technologies, enables the Company to map and navigate trillions of biological and chemical relationships within the Recursion Data Universe. The Company integrates physical and digital components as iterative loops of atoms and bits, scaling wet lab biology and chemistry data organized into virtuous cycles with computational tools to rapidly translate silico hypotheses into validated insights and novel chemistry. Its clinical programs in oncology and rare diseases include REC-617, REC-1245, REC-3565 and REC-4539. Its REC-617 is an orally bioavailable, cyclin-dependent kinase 7 (CDK7) inhibitor for the treatment of advanced solid tumors. Its REV102 program targets ectonucleotide pyrophosphatase/phosphodiesterase 1 (ENPP1), an enzyme implicated in the pathogenesis of HPP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
