10 Best Penny Stocks with Huge Upside Potential

​7. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)

Number of Hedge Fund Holders: 33

Analyst Upside Potential: 67.13%

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the Best Penny Stocks with Huge Upside Potential. On May 14, Morgan Stanley raised the price target on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) from $5 to $5.50, while keeping an Equal Weight rating on the shares.

​The rating follows the company’s first-quarter financial and business update reported on May 6. During the quarter, the company reported $6.47 million in revenue, which was well short of analysts’ expectations of $16.28 million. On the bright side, the EPS beat forecasts with a loss of $0.22 per share, while the Street was expecting a $0.26 loss per share.

​The company also provided an update on clinical progress of its pipeline, including REC-1245, REC-4881, and REC-4539, and is targeting early phase milestones for REC‑7735, REC‑102, REC‑617, and REC‑3565. Management noted that the pipeline remains on track across all wholly owned and partnered programs. Moreover, the end-to-end AI-driven platform was defined as the engine behind the progress. The company highlighted transcriptomics models that aim to bridge lab perturbations and patient biology, improving target selection, patient stratification, and experimental efficiency. Management presented these models, including the broader Recursion OS as value multipliers that accelerate design cycles, reduce re-runs, and increase translational fidelity.

​Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a biotechnology company focused on using AI, automation, and data science to industrialize drug discovery.