KeyBanc Reiterates Overweight Rating on Recursion Pharmaceuticals (RXRX )

KeyBanc analyst Scott Schoenhaus reiterated an Overweight rating and $16.00 price target on Recursion Pharmaceuticals (NASDAQ: RXRX ).

The analyst commented, "RXRX held its "Download Day"/Investor Day yesterday at its corporate headquarters in Salt Lake City. The event was well-attended by investors (both institutional and early-stage backers) and sell-side analysts (both biotech and broader technology analysts) given RXRX's unique AI/machine-learning value proposition in drug discovery. The main takeaways, in our view, were: 1) RXRX's seven Phase 1 and 2 readouts coming in the next ~18 months; 2) Bayer will be the first beta user of RXRX's LOWE LLM-orchestrated software and RXRX initiated its first joint oncology project with Bayer; and 3) the continued buildout of data layers in the Recursion OS (genomics, phenomics, transcriptomics, proteomics, inVivomics, etc.) yielding superior AI models. The Download Day also featured a fireside chat with the CEO of NVIDIA, Jensen Huang (NVIDIA made a $50M investment in RXRX in July 2023). While most of the discussion was on high-level topics, Mr. Huang sees parallels to the technological advancements in drug discovery being pursued by RXRX to when the chip industry was transitioning to being fully in silico early in his career. Specifically, Jensen noted at the event: “I’m a shareholder, Recursion is the largest investment we’ve ever made, outside of our own company.” We see this as a further testament to RXRX's platform and its abilities to leverage data and machine learning capabilities into the drug discovery market."

For an analyst ratings summary and ratings history on Recursion Pharmaceuticals click here. For more ratings news on Recursion Pharmaceuticals click here.

Shares of Recursion Pharmaceuticals closed at $9.38 yesterday.

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