Is Recursion Pharmaceuticals Inc. (RXRX) One of the Best Mid Cap Stocks to Buy According to Hedge Funds?

Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) is one of the best mid cap stocks to buy according to hedge funds. On November 1, TD Cowen analyst Brendan Smith touted the progress the company has made in developing its platform, Recursion OS. Consequently, he reiterated a Hold rating on Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) as the company reaffirmed its financial guidance for 2025 and 2026.

As of the third quarter, the company had achieved over $500 million in upfront and milestone payments from partners. The milestone payments underscore the progress made in delivering novel insights and advancing programs. Additionally, the payments position the company among a small group of pre-commercial biotechnology companies that have achieved scale. Recursion CEO Chris Gibson said the company’s cash runway through 2027 supports advancing its AI-enabled platform to drive industry change.

The Hold rating stance at TD Cowen affirms a cautious stance ahead of the leadership transition, with Dr. Najat Khan poised to take over as CEO. Likewise, while the company has delivered solid safety data for REC-617, the candidate drug is still in the early stages of development.

Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is a clinical-stage company that uses AI, machine learning, and high-throughput automation to industrialize drug discovery and development. It uses its AI-powered platform, the Recursion OS, to analyze datasets to identify potential drug candidates more efficiently.

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.