RLAY - Relay Therapeutics rebounds as Raymond James upgrades after selloff

2023-04-19 10:05:30 ET

• After losing over a third of the value in the previous session, Relay Therapeutics ( NASDAQ: RLAY ) added ~3% on Wednesday morning as Raymond James upgraded the biotech, noting that the selloff that followed initial clinical data for its cancer drug RLY-2608 was an overreaction.
• The analyst Dane Leone argues that the data readout, which was part of the ongoing 2023 annual meeting of the American Association for Cancer Research, is the key validation for the company’s Dynamo drug Discovery and development platform.
• While keeping her $29 price target on the stock, Leone upgraded Relay ( RLAY ) to Strong Buy from Outperform, noting: “We see the sell off on the response data to be overdone given the platform validation on safety and early nature of the disclosure.”
• Raymond James updates its model for the company to indicate the projected timeline for full market entry of RLY-2608 to 2028.
• Read: Despite over 70% decline in Relay ( RLAY ) share price, Seeking Alpha analyst Edmund Ingham reaffirmed his Buy rating on the stock in February, citing a potential accelerated approval for its lead asset RLY- 4008 in early 2024.

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