Last Updated: 09 Nov 2024
Executive Summary
Relay Therapeutics Inc. (RLAY) is a clinical-stage precision drug company with a market capitalization of $1.04 billion. The company has a strong analyst rating, with 6 Strong Buy and 6 Buy ratings. The stock is currently trading at $6.2, below its 52-week high of $12.14. The company's fundamentals are weak, with negative earnings and a high Price-to-Sales ratio. However, the company's technical analysis is positive, with a bullish 50-day moving average and a 200-day moving average that is starting to turn up. Overall, Relay Therapeutics is a risky investment, but it has the potential for significant upside.
Company Overview
Relay Therapeutics is a clinical-stage precision drug company that is developing small molecule therapeutics for the treatment of cancer. The company's lead drug candidate, RLY-4008, is a highly selective and potent inhibitor of the RET kinase. RLY-4008 is currently in Phase 2 clinical trials for the treatment of medullary thyroid cancer and non-small cell lung cancer. The company also has a pipeline of other drug candidates in early-stage development.
Fundamental Analysis
Relay Therapeutics' fundamentals are weak. The company has negative earnings and a high Price-to-Sales ratio. The company's EBITDA is -$389 million and its EPS is -$2.64. The company's Price-to-Sales ratio is 28.84.
Technical Analysis
Relay Therapeutics' technical analysis is positive. The stock is trading above its 50-day moving average and its 200-day moving average is starting to turn up. The stock's relative strength index (RSI) is 50, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
Relay Therapeutics' short-term outlook is mixed. The stock is trading below its 52-week high and its fundamentals are weak. However, the stock's technical analysis is positive and the company has a strong analyst rating. Overall, the stock is likely to trade sideways in the short term.
Long Term Outlook
Relay Therapeutics' long-term outlook is positive. The company has a strong pipeline of drug candidates and its lead drug candidate, RLY-4008, has the potential to be a blockbuster drug. The company's fundamentals are likely to improve as RLY-4008 progresses through clinical trials and is approved for commercial use. Overall, Relay Therapeutics is a risky investment, but it has the potential for significant upside.
Analyst Recommendations
The majority of analysts have a Strong Buy or Buy rating on Relay Therapeutics. The average analyst target price is $21.9, which represents a potential upside of over 250%.
