Goldman Sachs initiates Revolution stock with Buy rating, $65 target

Published 15/07/2025, 09:22
Goldman Sachs initiates Revolution stock with Buy rating, $65 target

Investing.com - Goldman Sachs initiated coverage on Revolution (NASDAQ:RVMD) with a Buy rating and a price target of $65.00 on Tuesday. The target aligns with the broader analyst consensus, which remains highly bullish with targets ranging from $57 to $88 per share. According to InvestingPro data, Revolution maintains a strong financial position with more cash than debt and a healthy current ratio of 13.5x.

Revolution is a late-stage clinical precision oncology company developing RAS(On) inhibitors to target RAS-addicted cancers, including pancreatic ductal adenocarcinoma (PDAC), non-small cell lung cancer (NSCLC), and colorectal cancer (CRC). With a market capitalization of $7.2 billion, the company currently trades near InvestingPro’s Fair Value estimate, suggesting balanced market pricing.

The company’s lead asset, daraxonrasib, a RAS(On) multi-selective inhibitor, is currently in two registrational Phase 3 trials: RASolute 302 for second-line metastatic PDAC with data expected in 2026, and RASolve 301 for second and third-line metastatic NSCLC in patients with RAS mutations.

Revolution plans to initiate two additional Phase 3 trials to expand daraxonrasib’s use into earlier-line PDAC treatments, including first-line metastatic and adjuvant settings.

Goldman Sachs estimates peak global sales for daraxonrasib could reach $12.1 billion across PDAC and NSCLC indications, noting positive monotherapy activity in second-line and later settings while highlighting potential for combination approaches to drive deeper responses.

In other recent news, Revolution Medicines has secured a $2 billion funding agreement with Royalty Pharma. This funding will support the company’s global commercialization strategy for its RAS-addicted cancer therapies, including up to $1.25 billion in synthetic royalty financing related to future sales of its drug daraxonrasib. Additionally, the U.S. Food and Drug Administration has granted Breakthrough Therapy Designation to daraxonrasib for the treatment of metastatic pancreatic ductal adenocarcinoma in patients with KRAS G12 mutations. The designation is based on promising early data from a Phase 1 clinical trial. In collaboration news, Revolution Medicines has entered a multi-year partnership with Iambic Therapeutics to leverage AI-driven drug discovery for oncology targets. Iambic will receive up to $25 million through this agreement, which aims to enhance drug discovery using Revolution’s data. Furthermore, Barbara Weber, a director at Revolution Medicines, has resigned from the board ahead of the company’s annual meeting. Lastly, Oppenheimer analysts have maintained their Outperform rating on Revolution stock, highlighting the company’s strong clinical programs and potential pipeline updates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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