Needham Retains Buy Rating on Recursion Pharmaceuticals, Maintains PT at $8

Core Insights - Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is recognized as one of the best penny stocks to buy according to hedge funds, with a maintained Buy rating and a price target of $8 by Needham [1][2] - The company is positioned strongly in the AI-driven drug discovery sector, leveraging its extensive proprietary dataset to enhance its capabilities [1][4] - Analysts from Morgan Stanley and BofA have a Hold rating on RXRX, with price targets of $4.8 and $8 respectively, leading to an average price target of $6.50, indicating a potential upside of approximately 34.58% from current levels [3] Financial Outlook - Recursion Pharmaceuticals has taken significant steps to extend its financial runway, with a pipeline that supports cash runways into the fourth quarter of 2027 [2] - The anticipation of multiple clinical readouts within the next 12 to 18 months, particularly regarding REC-617 in solid tumors and FAP results, contributes to a positive outlook for the company [2] Company Overview - Recursion Pharmaceuticals is a clinical-stage TechBio firm focused on industrializing drug discovery through its Recursion Operating System, which enables the mapping and navigation of trillions of biological and chemical relationships [4]