TD Cowen Forecasts Strong Price Appreciation for Revolution Medicines (NASDAQ:RVMD) Stock

Key Points

• TD Cowen raised its price target on Revolution Medicines from $250 to $270 and maintained a Buy rating, implying about 52% upside from the price cited in the report.
• Analyst sentiment is broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $251.19, though targets vary across brokerages.
• Shares fell 11% to $177.66 on Thursday. Quarterly results beat estimates, with a loss of $1.90 per share and revenue of about $198 million, largely reflecting sales after RASONQUE’s launch.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) had its price objective hoisted by equities researchers at TD Cowen from $250.00 to $270.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. TD Cowen's target price points to a potential upside of 51.98% from the company's current price.

RVMD has been the topic of a number of other research reports. Piper Sandler lifted their target price on Revolution Medicines from $210.00 to $222.00 and gave the company an "overweight" rating in a research report on Thursday. Brookline Capital Markets started coverage on Revolution Medicines in a research report on Monday, September 28th. They set a "buy" rating and a $318.00 price objective for the company. Raymond James Financial reiterated a "strong-buy" rating and set a $248.00 price target on shares of Revolution Medicines in a research report on Thursday, August 27th. The Goldman Sachs Group started coverage on shares of Revolution Medicines in a research note on Thursday, September 24th. They issued a "buy" rating and a $267.00 price target on the stock. Finally, Oppenheimer upped their price objective on shares of Revolution Medicines from $230.00 to $260.00 and gave the stock an "outperform" rating in a report on Thursday, August 27th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $251.19.

Revolution Medicines Trading Down 11.0%

Shares of NASDAQ RVMD traded down $22.04 during midday trading on Thursday, reaching $177.66. 6,729,328 shares of the stock were exchanged, compared to its average volume of 2,800,308. The stock has a market capitalization of $38.08 billion, a P/E ratio of -20.45 and a beta of 1.44. The company has a debt-to-equity ratio of 0.40, a quick ratio of 11.38 and a current ratio of 11.38. The company has a 50 day simple moving average of $198.21 and a 200 day simple moving average of $156.90. Revolution Medicines has a twelve month low of $58.91 and a twelve month high of $224.31.

Revolution Medicines (NASDAQ:RVMD - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The company reported ($1.90) EPS for the quarter, beating analysts' consensus estimates of ($2.35) by $0.45. The business had revenue of $197.56 million during the quarter, compared to analyst estimates of $25.58 million. During the same quarter in the prior year, the company posted ($1.61) earnings per share. As a group, equities analysts expect that Revolution Medicines will post -8.94 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Mark A. Goldsmith sold 80,000 shares of the company's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $209.20, for a total transaction of $16,736,000.00. Following the sale, the insider directly owned 267,330 shares of the company's stock, valued at $55,925,436. This represents a 23.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Lorence H. Kim sold 56,000 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $203.24, for a total transaction of $11,381,440.00. Following the sale, the director directly owned 17,090 shares in the company, valued at approximately $3,473,371.60. The trade was a 76.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 290,991 shares of company stock valued at $59,422,765. 7.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Revolution Medicines

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Burkett Financial Services LLC acquired a new position in shares of Revolution Medicines in the 3rd quarter valued at $27,000. Contravisory Investment Management Inc. acquired a new stake in Revolution Medicines during the 2nd quarter worth $32,000. Johnson Financial Group Inc. acquired a new stake in Revolution Medicines during the 2nd quarter worth $37,000. Silvant Capital Management LLC acquired a new stake in Revolution Medicines during the 2nd quarter worth $41,000. Finally, Northwestern Mutual Wealth Management Co. purchased a new position in Revolution Medicines during the 2nd quarter worth $41,000. Hedge funds and other institutional investors own 94.34% of the company's stock.

Key Stories Impacting Revolution Medicines

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: The FDA approved and Revolution Medicines launched RASONQUE (daraxonrasib) for eligible patients with metastatic pancreatic cancer. The drug generated $198 million in net sales in the quarter, which included only a partial period after launch; the EU’s CHMP also recommended marketing authorization. Company results and progress update
• Positive Sentiment: Analysts raised price targets while maintaining bullish ratings: RBC to $321, Guggenheim to $298, Truist to $261 and Piper Sandler to $222. These upgrades signal confidence, though targets are opinions rather than guarantees. RBC target update
• Positive Sentiment: RVMD reported a third-quarter loss of $1.90 per share, narrower than the $2.35 loss analysts expected. Revenue of about $198 million also exceeded estimates, largely reflecting RASONQUE’s launch sales. Quarterly results
• Negative Sentiment: The quarterly loss widened from $1.61 per share a year earlier. Despite the consensus beat, the company remains loss-making, which may temper enthusiasm as investors assess its path toward sustained profitability.

About Revolution Medicines

Revolution Medicines, Inc is a clinical-stage biopharmaceutical company focused on developing targeted therapies for patients with RAS-mutant cancers. The company's research platform is designed to discover and develop medicines that inhibit RAS proteins, which play a central role in the growth and spread of many cancers and have historically been difficult to target.

Its investigational pipeline includes RAS(ON) inhibitors and other precision oncology candidates, including daraxonrasib (RMC-6236), a pan-RAS inhibitor being evaluated in multiple solid tumors, as well as programs directed at specific mutations such as KRAS G12C and KRAS G12D.

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