Revolution Medicines stock initiated with Buy rating at Truist Securities

Published 05/09/2025, 11:54
Revolution Medicines stock initiated with Buy rating at Truist Securities

Investing.com - Truist Securities initiated coverage on Revolution Medicines (NASDAQ:RVMD) with a Buy rating and a price target of $99.00 on Friday. The company, currently valued at $7.3 billion, is trading at $38.95, with analyst targets ranging from $56 to $88. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model.

The research firm highlighted Revolution Medicines’ focus on targeting RAS mutations, which drive one-third of all new cancer diagnoses, positioning the company as a leader in this critical oncology segment.

Truist Securities specifically pointed to Daraxonrasib, the company’s multi-target "pan" inhibitor, projecting it to be an $8 billion-plus drug that will "accelerate faster than implied by consensus."

The firm believes the current share price fails to reflect the "revolutionary potential" of Revolution Medicines’ drugs when used in combinations with other treatments.

Truist Securities expects these features will "gain appreciation in the next 12-18 months as new data emerges," supporting its bullish outlook on the stock.

In other recent news, Revolution Medicines reported its Q2 2025 earnings, which revealed a significant miss on both earnings and revenue estimates. The company posted an earnings per share (EPS) of -$1.31, falling short of the expected -$1.12. Revenue was notably absent, coming in at $0 against an anticipated $30.59 million. Additionally, Piper Sandler has initiated coverage on Revolution with an Overweight rating and a $75.00 price target, focusing on the potential of its drug daraxonrasib for treating metastatic pancreatic ductal adenocarcinoma. Oppenheimer has also maintained its Outperform rating for Revolution, setting a price target of $75.00 after discussions with the company’s management. These analysts’ ratings reflect continued interest in the company’s developments despite the earnings miss. Revolution has guided for initial data from its daraxonrasib RASolute-302 study to be expected in 2026, with enrollment reportedly progressing well.

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