Guggenheim Gives Buy Rating to Relay Therapeutics (RLAY)

Relay Therapeutics, Inc. (NASDAQ:RLAY) is one of the Top 10 Stocks Under $10 That Could Triple. On September 4, Guggenheim began coverage of Relay Therapeutics, Inc. (NASDAQ:RLAY) with a Buy rating and a price target of $15.

Guggenheim analysts called Relay Therapeutics, Inc. (NASDAQ:RLAY) a “Best Idea” and questioned why it is trading below cash value despite having a strong pipeline.

Guggenheim Gives Buy Rating to Relay Therapeutics (RLAY)

The research firm focused on RLY-2608, Relay Therapeutics, Inc.’s (NASDAQ:RLAY) oral, selective, pan-mutant PI3Ka inhibitor. The RLY-2608 is currently in a fully-funded Phase 3 trial for breast cancer.

Guggenheim pointed out that RLY-2608’s Phase 1b progression-free survival was twice as long as expected compared to the control group. The firm believes that RLY-2608 has strong commercial potential, as many less effective drugs have quickly reached sales over $500 million. Relay Therapeutics, Inc. (NASDAQ:RLAY) is also ahead of its competitors in this mutant-selective class by 18 to 24 months.

In addition to oncology applications, Guggenheim sees potential for Relay Therapeutics, Inc.’s (NASDAQ:RLAY) RLY-2608 in treating vascular malformations (VM). The research firm believes that the company’s oncology-to-orphan thesis shift could lead to “substantial successes” similar to other biotech companies that shifted their strategies in a similar manner.

Relay Therapeutics, Inc. (NASDAQ:RLAY) is a clinical-stage, small molecule precision medicine company focused on developing therapies for cancer and genetic diseases.

While we acknowledge the potential of RLAY as an investment, 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 RLAY and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.