What Makes Relay Therapeutics an Investor Favorite? Recent Upgrade Signals Strong Upside Potential

Relay Therapeutics, a biopharmaceutical company trading on the Nasdaq under ticker RLAY, has recently caught the attention of major Wall Street analysts. The company represents what many institutional investors are increasingly bullish on—a combination of strong pipeline potential and significant room for growth. Recent market developments highlight why Relay has become such a focal point for sophisticated investors seeking exposure to innovative drug development.

Major Analyst Upgrade Pushes Relay Stock Target Higher

In late January 2026, Oppenheimer elevated its outlook on Relay Therapeutics from Perform to Outperform, signaling renewed confidence in the company’s trajectory. This shift reflects broader market recognition of Relay’s potential. According to analyst projections, the average one-year price target for Relay stands at $14.89 per share as of mid-January, with estimates ranging from $12.12 on the conservative end to $19.95 on the bullish side.

Given Relay’s most recent closing price of $7.59 per share, these targets represent approximately 96% upside potential—a figure that underscores analyst optimism. Beyond stock price, analysts project Relay’s annual revenue could reach $65 million, reflecting a remarkable 675% increase from current levels. While the company carries projected losses at -2.68 per share on a non-GAAP basis, this is typical for growth-stage biopharmaceutical firms investing heavily in research and development.

The put/call ratio for Relay trading stands at 0.12, indicating notably bullish sentiment among options traders—further evidence that market participants expect positive momentum ahead.

Institutional Confidence in Relay Grows Among Elite Hedge Funds

The institutional backing behind Relay has become increasingly pronounced. Currently, 375 funds and institutions maintain positions in Relay, though this represents a slight decline of 28 owners in the most recent quarter. However, what matters more is how these investors are positioning themselves. The average portfolio weight allocated to RLAY among all institutional investors is 0.08%, up 6.63% quarter-over-quarter—suggesting existing holders are increasing, not decreasing, their commitment.

Total institutional share ownership reached 179.79 million shares, though down modestly by 4.10% in the past three months. This modest decline masks more significant underlying shifts in strategic positioning among the largest stakeholders.

Top Shareholders Increase Relay Stakes Significantly

The actions of major institutional players tell the most compelling story. Sb Investment Advisers maintains the largest position at 27.9 million shares (16.10% ownership), with no changes during the recent quarter. However, other major funds are actively repositioning:

Commodore Capital has significantly increased its Relay holdings from 13.35 million to 17 million shares—a 21.47% increase that represents a clear vote of confidence. The firm simultaneously expanded its overall portfolio allocation to RLAY by 32.87%, demonstrating meaningful commitment.

Point72 Asset Management similarly boosted its stake from 13.45 million to 14.77 million shares (8.99% increase), while increasing its total portfolio weighting in Relay by 41.31% over the same period. This aggressive expansion suggests conviction among one of the industry’s most respected hedge funds.

Casdin Capital maintains an 11.34 million share position (6.54% ownership), with a modest 0.50% reduction in holdings offset by a substantial 37.45% increase in portfolio allocation weight—indicating a deliberate strategy to increase Relay’s importance within their fund despite taking some profits.

Bellevue Group rounds out the major stakeholders with 8.35 million shares (4.82% ownership), having added slightly more shares while expanding its portfolio weighting by 44.21%—the most aggressive increase among all major holders.

The Investment Case for Relay Takes Shape

When top-tier institutional investors like Point72, Commodore Capital, and Casdin Capital simultaneously increase their Relay allocations by 30-40% or more, it signals a rare alignment of investment thesis. Combined with Oppenheimer’s upgrade and the 96% average price target upside, Relay Therapeutics appears to have crossed a meaningful inflection point where institutional money, analyst research, and market sentiment are converging. The biopharmaceutical company’s potential—though still dependent on successful clinical development—has captured the attention of investors willing to bet meaningful capital on its future.