Needham Maintains Buy Rating on Recursion (RXRX)

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is one of the 10 Best Penny Stocks to Buy for the Next 5 Years. On August 5, Needham reiterated its Buy rating on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) with a price target of $8.

This decision came after Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) reported business updates and financial results for its second quarter of 2025.

The company showed strong financial health and strategic focus on cash preservation. In Q2 2025, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) reported total revenue reached $19.2 million, up from $14.4 in the same period last year. This primarily consisted of revenue from collaboration agreements.

Additionally, Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) has cash reserves of $534 million. The company believes that its expected cash runway will extend into the fourth quarter of 2027.

The company is actively working to advance its clinical development plans, which include the evaluation of REC-617 with standard care for certain cancer treatments.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage biotechnology company focused on combining technology, biology, and chemistry to advance the future of medicine.

While we acknowledge the potential of RXRX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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