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On Monday, H.C. Wainwright analyst Raghuram Selvaraju adjusted the price target on Revolution Medicines (NASDAQ:RVMD), increasing it to $73.00 from the previous $72.00. The firm sustained its Buy rating on the stock. With a current market capitalization of $7.57 billion and an overall "FAIR" financial health rating according to InvestingPro, the company has attracted strong analyst interest, with consensus targets ranging from $59 to $87. The revision followed Revolution’s fourth-quarter financial results, where the company reported a net loss of $1.12 per share, a larger deficit than the anticipated $0.94 per share. The discrepancy was primarily due to higher operating expenses than expected, with research and development (R&D) and selling, general and administrative (SG&A) costs reaching approximately $188.1 million and $28.2 million, respectively. These figures surpassed H.C. Wainwright’s estimates of $159.3 million for R&D and $25.4 million for SG&A.
For the full year of 2025, H.C. Wainwright now projects Revolution will post a net loss of $4.51 per share, an increase from the previously estimated net loss of $3.79 per share. Despite the wider losses, Revolution concluded the year 2024 with a strong cash and cash equivalents position of roughly $2.29 billion. The analyst believes this financial standing should provide Revolution with an operational runway into the second half of 2027 and support the company through various significant data catalysts, which are expected to be key value inflection points. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading near its fair value. Subscribers can access the comprehensive Pro Research Report for deeper insights into Revolution’s financial health and growth prospects.
Revolution Medicines is recognized by H.C. Wainwright as one of the most well-funded development-stage companies in the precision oncology field. The analyst reiterated the Buy rating and adjusted the 12-month price target to $73, citing the company’s balance sheet strength and the advancement of its discounted cash flow (DCF)-based valuation. The company’s strong financial position is reflected in its minimal debt-to-equity ratio of 0.06 and robust Altman Z-Score of 14.66, indicating very low financial distress risk.
In other recent news, Revolution Medicines reported a significant increase in its fourth-quarter net loss for 2024, totaling $194.6 million, up from $161.5 million in the previous year. Despite this, the company maintains a strong financial position with $2.3 billion in cash and investments, supported by $823 million from an equity offering. Analysts from Needham adjusted their financial outlook on Revolution, lowering the price target to $59 from $60 while maintaining a Buy rating, following the company’s earnings report that revealed a loss per share of $1.12, which exceeded the consensus estimate.
Revolution Medicines is advancing its investigational drug, daraxonrasib, with plans for two additional registrational trials targeting pancreatic ductal adenocarcinoma (PDAC) to begin in the second half of 2025. Needham analysts expect a positive market reaction to this expansion, particularly in the adjuvant setting for PDAC. The company also projects a GAAP net loss between $840 million and $900 million for 2025 due to increased expenses associated with their clinical development programs. Revolution is preparing for potential regulatory approvals and expanding its global access and combination therapy strategies.
Investors are advised to watch for forthcoming clinical data on zoldonrasib (RMC-9805) as a monotherapy in the second quarter of 2025 and in combination therapy anticipated later in the year. Revolution’s strategic focus on innovation and clinical trials, particularly in the RAS inhibitor space, positions it well within the competitive landscape, despite the increased net loss.
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