Analysts Rated Bullish, Financials are Wrecked

Revolution Medicines, Inc. (NASDAQ: RVMD) is a pharmaceutical company operating in clinical-stage precision oncology. Their focus is on creating innovative targeted therapies through the development of novel combination and monotherapy treatment regimens.

The firm’s mission is to maximize the depth and durability of clinical benefits while also circumventing adaptive resistance mechanisms for patients who are dependent on the RAS and mTOR pathway.

What Do The Research Analysts Think?

Due to the recent rise in buying volumes, Several equity researchers have recently shed light on RVMD stock price. Needham & Company LLC gave a “buy” rating during mid-September, with a price target of $34.00.

Another prominent name, Stifel Nicolaus upgraded their price target from $37.00 to $47.00 and assigned a “buy” rating to the company in a research report. Taking a broader look, six analysts have assigned a “buy” rating to the company, while only one has given it a “hold” rating.

The “Actual” Performance

Despite the rising RVMD stock price, the company’s performance in its quarterly reports is worsening. Since Quarter 4 of last December, the company’s revenue has been going down at a compound rate of -77%.

Keeping a net margin of 53%, the firm is bleeding funds in its operations. The earnings before interest and taxes are negative in all these quarters with huge negative margins. The current ratio of the firm is 11.81 while the debt-to-equity ratio is 0.07.

Technical Analysis and Prediction of the RVMD Stock Price

The RVMD stock price was trading in a bullish trend until the start of October. The price touched the support level of $29.05 and then broke past it, resulting in the breaking of the trendline.

However, at the press time, the RMVD stock price has currently reclaimed its support level of $24.36, which has further assisted Friday’s surge of 31.4%. The current resistance is the same broken support of $29.9. The 50-day exponential moving average price is $28.6 while the 200-day EDMA is $27.23.

Price Prediction

The prediction for the RVMD stock price will be bullish if the bulls can keep the price above the current resistance level. However, the stock may reach its resistance level before touching its support level. This scenario is unlikely as the RSI has not yet reached oversold levels.

Conclusion

Revolution Medicines Inc. (NASDAQ: RVMD) is a pharmaceutical company. The RVMD stock has been rated bullish by many analysts but the fundamental performance is not appealing. The current price is near a resistance and a bullish prediction is assigned

Technical Levels

Support Levels: $24 and $20

Resistance Levels: $29 and $33

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.