6. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX)
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of the 10 most shorted penny stocks to buy.
The stock offers a 100% upside potential at the prevailing level, as of April 23 closing, based on its 1-year median price target of $7. This supports a moderately bullish consensus sentiment, with 1 Buy rating and 2 Hold calls.
Recent developments also back the bullish views on the stock, which has seen a significant amount of short interest lately. On April 17, Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) made an appearance at the Needham Healthcare Conference, where CFO Ben Taylor shared details about the company’s priorities for 2026. The company has entered a phase featuring regular data readouts and partnership milestones following the merger and restructuring completed last year.
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) has delivered proof-of-concept data on its FAP molecule, with four clinical programs advancing. Over $500 million came from Sanofi, with $60 million from Roche MAP milestones. The Roche deal surpassed $210 million in payouts, while every Sanofi project holds a total of $343 million in milestone possibilities.
There are promising clinical results, with FAP awaiting guidance, and CDK7 combination data to be released in the first half of next year. The company also looks forward to the upcoming results on MALT1 and RBM39, and LSD1 entering the clinic later in 2027. Taylor also reflected on cutting costs by 35% without compromising any projects last year, with the target of keeping costs below $390 million during 2026.
Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is a clinical-stage biotechnology company involved in drug discovery and development. The company accomplishes this by combining technological advancements across automation, chemistry, data science, and engineering to industrialize drug discovery. Its therapeutic portfolio includes a number of different drugs, such as REC-4881 in phase 1b/2 of clinical trial, REC-3565 and REC-617 both in phase 1/2, REC-4539, REC-7735, and more.
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 the cheapest AI stock.
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