Sanmit Amin
2 min read
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Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of 10 AI stocks that will skyrocket.
Morgan Stanley has lowered its price target on Recursion Pharmaceuticals (NASDAQ:RXRX) to $5 from $8, while maintaining an Equal Weight rating on the stock. The revision comes in response to the company’s recent strategic updates, including a restructured pipeline, workforce reduction, and revised financial guidance. In a note to investors, the firm cited Recursion’s recent decision to prioritize core programs and streamline operations, including a 20% reduction in headcount, as key drivers for the model revision. The company also issued updated guidance on cash burn, signaling tighter capital discipline as it focuses on long-term sustainability.
A pharmacist in a hospital pharmacy stands next to a row of various drug containers.
Morgan Stanley noted that while the moves could support operational focus and extend cash runway, they also reflect the challenges of advancing a broad pipeline under current market conditions. The firm views the restructuring as a necessary, though measured, step to align resources with the most promising opportunities in the portfolio. Despite the reduced target, Morgan Stanley’s Equal Weight rating suggests a neutral stance, with the belief that both upside and downside risks are now more balanced given the new strategy and cost structure.
Recursion Pharmaceuticals, Inc. (RXRX) is recognized for its advanced use of computational methods and machine learning to accelerate drug discovery. The firm combines biology, chemistry, and automation with data-driven approaches to identify potential treatments faster and more efficiently than traditional methods.
While we acknowledge the potential of RXRX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RXRX and that has 100x upside potential, check out our report about this cheapest AI stock.
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