Wells Fargo reiterates Equal Weight rating on Relay Therapeutics stock

Published 08/08/2025, 12:16
Wells Fargo reiterates Equal Weight rating on Relay Therapeutics stock

Investing.com - Wells Fargo (NYSE:WFC) maintained its Equal Weight rating and $4.00 price target on Relay Therapeutics (NASDAQ:RLAY) stock amid ongoing clinical developments. The company, currently trading at $3.49 with a market cap of $598 million, shows mixed signals according to InvestingPro analysis, which indicates the stock is currently undervalued.

The research firm noted that Relay Therapeutics shares have declined 15% year-to-date, underperforming the XBI biotech index which is down 5% during the same period. Despite the decline, the company maintains a strong balance sheet with more cash than debt, and a healthy current ratio of 19.96x.

Wells Fargo acknowledged potential for RLY-2608 in both breast cancer and vascular malformations, but indicated that investor skepticism remains regarding the drug’s differentiation from competitors.

The firm suggested that more clinical data will be necessary to fully understand RLY-2608’s positioning in the treatment landscape for these conditions.

Wells Fargo expects the stock to remain range-bound in the near term due to a lack of immediate clinical catalysts as the company continues to execute its breast cancer and vascular malformation studies.

In other recent news, Relay Therapeutics has reported updated interim clinical data for its investigational drug RLY-2608, intended for patients with specific mutations associated with advanced breast cancer. The data, presented at the American Society of Clinical Oncology (ASCO) 2025 Annual Meeting, showed a median progression-free survival (PFS) of 10.3 months overall and 11.0 months in second-line patients with PI3Kα-mutated, HR+, HER2- locally advanced or metastatic breast cancer. This aligns with previous reports from December 2024. Furthermore, the Phase 2 ReDiscover trial demonstrated improvements in the treatment’s effectiveness, particularly in patients with PIK3CA kinase-domain mutations, showing an increase in median progression-free survival by seven months compared to earlier updates. Following these developments, Citizens JMP analysts reaffirmed their Market Outperform rating for Relay Therapeutics stock, maintaining the price target at $12.00. These recent developments indicate consistent progress in Relay Therapeutics’ clinical trials.

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