Here’s What J.P. Morgan Thinks About Recursion Pharmaceuticals (RXRX)

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the Best High Volume Penny Stocks to Buy. On December 17, Priyanka Grover from J.P. Morgan upgraded Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) from Hold to Buy and also raised the price target from $10 to $11.

The analyst noted that the upgrade is based on strong results from Phase 1b/2 data of the TUPELO trial of REC-4881, which is a MEK1/2 inhibitor for familial adenomatous polyposis. The analyst noted that REC-4881 has a strong potential with over $1 billion in US sales and a 60% probability of success.

The treatment in the trial showed rapid polyp burden reductions in 75% of evaluable FAP patients, along with a 43% median drop after 12 weeks. Notably, the durable effects persisted after the treatment. Moreover, the safety profile aligns with MEK inhibitors, featuring mostly Grade 1/2 adverse events like rash and elevated CPK, with no Grade 4 issues reported.

The analyst highlighted that the positive results from the trial validate the company’s AI-driven pipeline. Moreover, the company has already generated more than $500 million in milestone payments through its pharmaceutical partnerships.

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) operates as a clinical-stage biotech company that decodes biology and chemistry by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery in the US. The company has replaced human-led hypothesis testing with an AI-integrated operating system.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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