6. Revolution Medicines, Inc. (NASDAQ:RVMD)
Stock Upside Potential: 26.47%
Year To Date Gain: 71.22%
Number of Hedge Fund Holders: 85
Revolution Medicines Inc. (NASDAQ:RVMD) is one of the best stocks to buy in a rising market, according to Wall Street analysts. On April 27, shares of Erasca dropped sharply after Revolution Medicines Inc. (NASDAQ:RVMD) accused the company of infringing patents and misusing trade secrets tied to its cancer drug candidate ERAS-0015. Revolution claims the therapy is substantially similar to its own treatment and demanded that Erasca halt U.S. development, also alleging improper use of comparative data. While Erasca disputes the claims and plans to fight them, the dispute overshadowed positive early-stage trial results for ERAS-0015 and triggered a steep selloff in the stock.
On April 23, Mizuho reiterated an Outperform rating on Revolution Medicines Inc. shares (NASDAQ:RVMD) and raised the price target to $185 from $140.
The price target hike comes amid growing confidence about the company’s lead candidate drug, daraxonrasib, in the treatment of pancreatic cancer. The research firm has already increased the drug’s success probability to 90% from 80%, buoyed by recent clinical trial data. It has also accelerated the drug’s adoption trajectory as a first- and second-line treatment for pancreatic cancer.
Immediate first-line data showed landmark analyses at 6 months for the daraxonrasib regimen that were comparable to those of gemcitabine plus nab-paclitaxel. Mizuho remains optimistic about the ongoing RaSolute 303 study following daraxonrasib’s performance as a second-line treatment. It expects the drug to generate $14 billion in risk-adjusted pancreatic cancer revenues by 2035.
Revolution Medicines Inc. (NASDAQ:RVMD) is a clinical-stage oncology company. It develops targeted therapies for patients with RAS-addicted cancers, which drive roughly 30% of human cancers. The company uses a proprietary tri-complex inhibitor platform to target active RAS proteins (RAS-ON inhibitors).
While we acknowledge the potential of RVMD 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 RVMD and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Stocks to Buy in a Rising Market According to Wall Street Analysts.
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