Why Recursion Pharmaceuticals Stock Vaulted 11% Higher on Wednesday
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Sentiment on the company has improved following solid clinical trial results from one of its pipeline drugs earlier this month.An influential bank raised upgraded shares of Recursion Pharmaceuticals (RXRX +11.43%) on Wednesday, and in response, investors piled into the stock. The clinical-stage biotech's equity zoomed 11% higher in price that trading session, which was particularly impressive given the broadly weak performance of many stocks across the day. Recommendation change for the better Well before market open, prognosticator Priyanka Grover of JPMorgan Chase unit J.P. Morgan changed her Recursion rating. She now feels it's worthy of an overweight (buy, in other words), up one full peg from her previous tag of neutral. She also raised her price target on the shares by 10% to $11 apiece. According to reports, Grover's new take is based largely on the highly encouraging clinical trial readout of the company's REC-4881 investigational drug. The medication, designed to treat familial adenomatous polyposis (FAP; a condition characterized by the development of polyps within the body), demonstrated efficacy in a Phase 1b/2 trial. In the analyst's view, this drug has blockbuster potential, i.e. it could reach sales of over $1 billion annually. She also rates Recursion's chances of bringing it to market at 60%. ExpandNASDAQ: RXRXRecursion PharmaceuticalsToday's Change(11.43%) $0.48Current Price$4.68Key Data PointsMarket Cap$2.2BDay's Range$4.48 - $5.0152wk Range$3.79 - $12.36Volume65MAvg Vol43MGross Margin-16039.74% Self-discovery I should caution here that, no matter how promising a pipeline medication might be throughout the various stages of clinical testing, its ultimate approval by regulators is never guaranteed. So, as always with biotech stocks, investors should approach Recursion with some level of caution.Advertisement Still, the recent investor excitement around REC-4881 is understandable and justified, particularly given that the drug was developed through Recursion OS, Recursion's proprietary, artificial intelligence (AI)-assisted discovery system. About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanRead NextDec 8, 2025 •By Eric VolkmanWhy Recursion Pharamaceuticals Topped the Market TodayNov 24, 2025 •By Prosper Junior BakinyCould Recursion Pharmaceuticals Be the Next Big Artificial Intelligence (AI) Stock?Nov 19, 2025 •By Prosper Junior BakinyIs Recursion Pharmaceuticals a Meme Stock?Nov 4, 2025 •By Prosper Junior Bakiny3 Things Investors Need to Know About Recursion PharmaceuticalsOct 31, 2025 •By David Jagielski, CPACould Recursion Pharmaceuticals Be the Next Big Artificial Intelligence (AI) Stock?Oct 21, 2025 •By Prosper Junior BakinyUp 25% in 1 Month, Is This Stock a Buy?