Is Recursion Pharmaceuticals, Inc. (RXRX) the Best Fundamentally Strong Penny Stock to Buy?

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is among the best fundamentally strong penny stocks to buy according to analysts. On December 19, TheFly reported that Cathie Wood’s ARK Investment has acquired 755,538 shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) in a $3,354,588 transaction. This purchase is a testament to the ARK’s growing interest in the biotech sector and aligns with its aim to invest in innovative companies.

Earlier, on December 17, JPMorgan upgraded Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) from Neutral to Overweight, while increasing its price target to $11.00 from $10.00. This follows the company’s promising results from MEK 1/2 inhibitor, REC-4881, which showcased robust efficacy in FAP patients during the TUPELO trial. The firm believes that the addressable patient population for the treatment is larger than previously anticipated.

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JPMorgan sees huge potential for REC-4881 in the United States, forecasting peak sales surpassing $1 billion with a 60% probability of success. Additionally, the investment bank highlighted REC-617, a CDK7 inhibitor that demonstrates early anti-tumor activity in platinum-resistant ovarian cancer. What further strengthens the company’s AI-driven pipeline are pharmaceutical partnerships, which have generated more than $500 million in milestone payments to date.

Overall, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has a ‘Hold’ or equivalent rating from 63% of the analysts covering the stock. With a median price target of $7, the stock has an upside potential of 64.32%.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a Utah-based clinical-stage biotechnology company specializing in the decoding of biology and chemistry. Founded in 2013, the company develops REC-994, REC-2282, and REC-4881, among others.

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.

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Disclosure: None.