William Blair initiates Revolution stock with outperform on RAS franchise

William Blair has initiated coverage on Revolution Medicines Inc. (RVMD) with an "Outperform" rating and a price target of $226 per share. The stock is currently trading at $189.26, marking a 281% gain over the last year and a 138% increase year-to-date. Analyst consensus favors a "Strong Buy" rating, with price targets ranging from $179 to $320.

Revolution Medicines has been focused on targeting the RAS (Ras-related protein) since its inception in 2014. In August 2026, the FDA approved their drug Rasonque (daraxonrasib) for patients with previously treated metastatic pancreatic cancer. Seven Phase III trials are currently ongoing or planned for pancreatic and lung cancer.

William Blair's analysis indicates strong early trends for the Rasonque launch. The RASolute 302 trial demonstrated promising results, with Rasonque nearly doubling overall survival to 13.2 months from 6.7 months and tripling the response rate to 30% from 11%. The company's Pro Research Report suggests the stock may be overvalued relative to its fair value, but it maintains a solid balance sheet with liquid assets exceeding short-term obligations.

Investors can access the comprehensive Pro Research Report for RVMD and 1,400+ other US equities for deeper insights. The FDA approved Rasonque 35 days after accepting the new drug application, granting it a broad label with no RAS test requirement, making about 19,000 U.S. patients eligible. Over 2,000 patients received the drug through expanded access before approval.

William Blair highlighted clinical, regulatory, and commercial risks associated with their lead products, daraxonrasib and zoldonrasib. The firm is concentrating on the upcoming colorectal update later in 2026 and expects the stock's performance to be influenced by early launch numbers, Tango's PRMT5 combination data at ESMO, and the colorectal plan.