Why Relay Therapeutics Stock Rocketed Nearly 15% Higher This Week

Key Points

• An analyst initiated coverage of the biotech.

• Not only does he consider it a buy, he's also designated it as one of his firm's top picks.

• 10 stocks we like better than Relay Therapeutics ›

Precision medicine specialist Relay Therapeutics (NASDAQ: RLAY) probably didn't want this holiday-shortened trading week to end, since it was quite the stock market star during the period. According to data compiled by S&P Global Market Intelligence, its share price climbed by almost 15%, thanks in no small part to a bullish new analyst note.

A new bull arrives on the scene

After market hours Wednesday, Guggenheim Securities prognosticator Brad Canino initiated coverage of Relay. He flagged the biotech as a buy with a price target of $15 per share, nearly four times the company's most recent closing share price. Given that sort of potential, it wasn't surprising that Canino bestowed his firm's Best Idea designation on the stock.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

According to reports, the analyst pointed to the company's current late-stage breast cancer trial for its orally administered RLY-2608 as a particularly promising development. He added that the medicine has a clean safety profile and has tested well so far in clinical studies. On top of that, the treatment has potential for treating vascular malformations, an orphan disease frequently afflicting children.

As for the company's financial position, he said that it is currently trading under its cash position, a dynamic that is often irresistible to stock bargain hunters.

Second-quarter improvements

It isn't necessarily hard to be positive about Relay's future. Not only does it have a promising drug late in the development stage, its financial performance has also been encouraging recently. The company earned $677,000 in its second quarter compared to the $0 in the year-ago period and managed to narrow its per-share net loss by almost 41% across that stretch to $0.41.

Should you invest $1,000 in Relay Therapeutics right now?

Before you buy stock in Relay Therapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Relay Therapeutics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $678,148!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,052,193!*

Now, it’s worth noting Stock Advisor’s total average return is 1,065% — a market-crushing outperformance compared to 186% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 25, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.