Stifel has significantly adjusted its target price for Revolution Medicines (NASDAQ: RVMD), lifting it to $170 from $85 as of Thursday. The firm sustains a Buy rating on the stock, which currently trades around $117.51, a level that has already climbed approximately 187% over the past twelve months. Data indicates that RVMD is trading close to its 52-week peak of $124.49.
In its updated financial outlook, Stifel revised the biotech company’s revenue predictions, anticipating $16.1 billion in annual revenue by the year 2035. This optimistic projection stands despite Revolution Medicines reporting a negative EBITDA surpassing $1 billion over the previous year, signaling current unprofitability.
From a merger and acquisition perspective, Stifel places Revolution’s valuation at roughly $36 billion. This equates to a deal value to five-year forward sales ratio in the range of 4.7 times, which comfortably fits within historic biotech M&A multiples ranging from 4 to 5 times sales.
Highlighting Revolution Medicines’ portfolio, Stifel emphasizes the "scarcity value of pan-RAS inhibitors," indicating substantial intangible asset value in the pipeline that is not captured fully in conventional five-year forward estimates. The research notes that this under-recognized valuation could provide Revolution with considerable negotiating leverage during M&A discussions or alternatively create substantial short- to medium-term upside if the company remains independent.
Additional analyst activity around Revolution Medicines has reflected heightened interest and optimism. RBC Capital recently elevated its price target for RVMD to $140, attributing the rise to boosted investor enthusiasm concerning potential mergers or acquisitions. Guggenheim followed suit, raising its price target to $160, based on refined assumptions regarding Revolution’s RAS inhibitor candidates, notably daraxonrasib and zoldonrasib.
Meanwhile, Goldman Sachs has maintained a Buy rating with a more conservative $73 target, citing encouraging clinical trial data for zoldonrasib. Trials combining zoldonrasib with folfirinox treatment in pancreatic cancer patients revealed a 63% overall response rate, underscoring potential therapeutic advantages. Stifel also underscored Revolution's strong foothold in researching pancreatic ductal adenocarcinoma (PDAC), noting three ongoing Phase 3 trials for daraxonrasib and further studies anticipated to commence in 2026.
Truist Securities assigned a $99 target price, suggesting that Revolution Medicines appears well-positioned enough to potentially forego acquisition offers if desired, reinforcing the company’s strategic independence.
These developments collectively point to a dynamic period of progression and heightened investor interest in Revolution Medicines' drug pipeline and corporate strategy.