"Biotech Bull Hunter" Needham is betting on this leader in "AI+ new drug research and development" and is betting that the stock price will skyrocket by 68%.

In recent days, Needham, a Wall Street asset management institution that has long focused on discovering biotech giants, released a research report maintaining its most optimistic buy rating on Recursion Pharmaceuticals, Inc. (RXRX.US), which focuses on "AI + new drug development". The target price is maintained at $8, meaning that Needham is bullish on the company's stock price almost doubling and stating that Recursion Pharmaceuticals is one of the "12 Nasdaq penny stocks most favored by Wall Street hedge funds". Senior analyst Gil Blum from Needham reiterated his bullish rating on Recursion Pharmaceuticals based on various factors, highlighting the company's strong leading position in AI-driven drug development. Blum emphasized that as a leader in the field, the company has extensive and proprietary deep coverage datasets to support its position. As of Monday's close of the U.S. stock market, Recursion Pharmaceuticals' stock price closed at $4.77. Needham's $8 target price implies a potential upside of 68% in the company's stock price according to the institution. Needham, a top investment institution on Wall Street, has a deep coverage foundation in the healthcare/biotech field and has discovered "biotech super giants" such as Tempus AI and Axsome Therapeutics in the past. They have also been hosting Needham Healthcare Conference and Private Biotech & MedTech 1x1 Forum for several years, demonstrating their continuous investment in the biotech and healthcare sectors and their ability to integrate buyer/seller resources. Senior analyst Gil Blum remains very optimistic about Recursion Pharmaceuticals because the company has taken significant proactive measures to extend its runway of capital and financial fundamentals. The company is focusing on its flagship product pipeline, which will allow its cash to support until the fourth quarter of 2027. Blum believes that not only will "AI + new drug development" continue to provide strong revenue data, but the optimistic expectations for several clinical results in the next 12 to 18 months also support the institution's positive outlook on Recursion, especially regarding the important updates on REC-617 in the solid tumor field and the upcoming FAP results. On the other hand, analysts from two other top Wall Street institutions, Morgan Stanley and Bank of America Corp, have respectively maintained a "hold" rating on Recursion Pharmaceuticals, with target prices of $4.8 and $8. As of the close of the U.S. stock market last Friday, based on the average expectations of all Wall Street analysts, the average target stock price for Recursion Pharmaceuticals within 12 months is $6.50, indicating a potential upside of 34.58% from the closing stock price last Friday. Who is Recursion Pharmaceuticals? Recursion Pharmaceuticals, Inc. is an emerging biotech company still in the clinical stage, committed to utilizing cutting-edge AI technology to decode biology and chemistry to achieve and accelerate industrial drug development processes. Their focus on "AI + new drug development" with the Recursion Operating System (Recursion OS) allows them to build on a diverse set of biological and chemical technologies, enabling the company to create detailed maps and navigate trillions of biological and chemical relationships in their datasets. The company successfully integrates high-throughput biological experiments, imaging, and machine learning into an "industrialized drug discovery platform" with their self-built "AI + new drug development" super platform, Recursion Operating System (Recursion OS). This not only advances their in-house biotech product pipeline but also monetizes the strong innovative capabilities of the AI platform through external collaborations. Recursion Pharmaceuticals, driven by Recursion OS, from target discovery, molecular design to early clinical development, along with recent configurations for the BioHive-2 (NVIDIA DGX SuperPOD) AI GPU supercomputer cluster based on the NVIDIA Corporation Blackwell architecture, as well as the comprehensive acquisitions of Cyclica and Valence, have strengthened the company's large-scale model and AI supercomputing capabilities in both biology and chemistry while accelerating the in-house pipeline. Regarding the in-house clinical pipeline (with a focus on the clinical stage), the key projects consistent with the company's official pipeline page and recent reports include: REC-617 (CDK7 inhibitor): solid tumors, Phase I/II; REC-1245 (RBM39 selective degrader): biomarker-enriched solid tumors & lymphomas, Phase I/II. Undoubtedly, Recursion OS is the core revenue platform for the company, integrating multi-modal experiments, high-content imaging, and machine learning into a unified operating system, serving as the internal pipeline support and external cooperation "foundation" of the company. This platform successfully integrates high-content imaging, omic perturbation, causal inference, and generative chemistry/molecular design into a unified "operating system", and coupled with the BioHive-2 supercomputer accelerates large model training; the company mentioned in their Q2 2025 earnings call that OS 2.0 is actively being used in various aspects of biology, chemistry, and clinical development. The "AI + Medicine" Wave As the leader of NVIDIA Corporation, Jensen Huang, known as the "AI Father," has repeatedly referred to "AI + medicine/biology" as the next astonishing revolution in the global technology field at various public events. He even declared at a conference that the era when everyone must learn computers is over, and biology and medicine are the future of humanity. The deep integration of generative AI with the healthcare/medicine/pharmaceutical field has greatly promoted positive research progress in multiple subfields, especially in drug discovery, gene editing, disease diagnosis, patient monitoring, and medical image analysis. It is expected that by 2025, a number of breakthrough research results related to "AI + healthcare" with significant commercial potential will emerge. Dmitris Hassabis, the 2024 Nobel Prize winner in Chemistry, even boldly stated that it is very likely that by the end of this year, some AI-designed drugs will enter clinical trials. Hassabis explained that his Isomorphic Labs focuses on shortening the drug development process from ten years or longer to "weeks or months". The latest research report from GMI Research shows that the value of the healthcare market integrated with AI technology in 2022 is only about $10.4 billion, and is expected to reach $189.9 billion by 2030, with a high compound annual growth rate (CAGR) of 43.7% during this period. GMI Research states that when analyzing highly recurrent medical data, AI often performs tasks in a shorter time and at lower costs, significantly optimizing the connections between patients, doctors, and hospital management personnel; the institution also predicts that AI is expected to be fully applied in medical imaging and rapid diagnosis, drug discovery, Siasun Robot & Automation for medical surgery assistance, precise medicine at the genetic level, drug simulation screening, and protein structure prediction, significantly reducing product innovation cycles, improving the precision of modern medicine, and covering a wider range of patients in the same period of time.