Recursion Pharmaceuticals Inc (NASDAQ:RXRX) shares moved higher Wednesday after JPMorgan upgraded the stock to Overweight from Neutral and lifted its price target to $11 from $10.
- Recursion Pharmaceuticals shares are climbing with conviction. What’s behind RXRX gains?
What Happened: JPMorgan analyst Eric Joseph raised his outlook on Recursion, reflecting stronger confidence in the company's AI‑driven drug discovery platform.
JPMorgan underscored “blockbuster potential” for Recursion's REC‑4881, projecting peak U.S. sales above $1 billion with a 60% chance of success. REC‑617 has also shown promising early results in platinum‑resistant ovarian cancer, the firm added.
Analysts highlight further upside from broader patient reach, stronger market penetration and pricing, while noting that Recursion's AI‑driven pipeline is validated by these clinical outcomes and its pharmaceutical partnerships.
The upgrade comes amid increased interest being reported in partnerships between leading AI firms and biotech companies.
Recursion, which is backed by Nvidia, may be seeing some extra attention on Wednesday as OpenAI and Anthropic explore data partnerships with biotechs, according to a report from The Information.
The report indicates that multiple big AI players are exploring potential licenses for specialized data that would be used for AI training tasks. Although Recursion wasn’t named in the report, its AI-driven approach appears to be in focus on Wednesday.
RXRX Price Action: Recursion Pharmaceuticals shares were up 18.10% at $4.95 at the time of publication on Wednesday, according to Benzinga Pro.
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