Relay Therapeutics: Raymond James Maintains Strong Buy, PT Down to $19.

Relay Therapeutics: Raymond James Maintains Strong Buy, PT Down to $19.

Raymond James has reaffirmed its strong buy rating on Relay Therapeutics (Nasdaq: RLAY) while lowering its price target to $19 from $21. The analyst firm cited the company's ongoing clinical trials and strong cash position as key factors supporting their rating. Relay Therapeutics reported its second-quarter 2025 financial results and corporate updates on August 7, 2025 [1].

The company presented updated data at the 2025 American Society for Clinical Oncology (ASCO) Annual Meeting, showing consistent results with its previous disclosures. This includes a 10.3-month median progression-free survival (PFS) and a 39% objective response rate (ORR) in patients with PI3Kα-mutated, HR+/HER2- metastatic breast cancer. Additionally, the company initiated its Phase 3 ReDiscover-2 trial in the second quarter, studying RLY-2608 + fulvestrant versus capivasertib + fulvestrant in HR+/HER2- breast cancer patients [1].

Raymond James highlighted the company's strong cash position, with $656.8 million in cash, cash equivalents, and investments as of June 30, 2025. The company expects this cash to be sufficient to fund its operating expenses and capital expenditure requirements through 2029 [1]. However, the analyst firm also noted the company's significant net loss of $70.4 million for the second quarter of 2025, which was primarily driven by research and development expenses [1].

Despite the net loss, Raymond James remains optimistic about Relay Therapeutics' pipeline and the potential market opportunity for RLY-2608. The analyst firm expects the company's clinical data to support regulatory approval and commercialization of its drug candidates [1].

References:
[1] https://www.biospace.com/press-releases/relay-therapeutics-reports-second-quarter-2025-financial-results-and-corporate-updates