RLAY Stock Declines Pre-Market After $175M Offering — Despite Fresh Bullish Calls On Relay's Zovegalisib

• Barclays raised its price target on Relay Therapeutics to $27 from $21 while maintaining an ‘Overweight’ rating, implying a potential upside of 124% from RLAY’s closing price on Tuesday.
• The firm cited growing confidence in zovegalisib following the company’s latest clinical update.
• Citizens said the data support a larger vascular anomalies opportunity and a potential accelerated approval pathway, with regulatory feedback expected in the second half of 2026.

Relay Therapeutics Inc. (RLAY) shares declined more than 5% in Wednesday’s pre-market trade, extending the marginal decline on Tuesday, with the stock on track for its fifth consecutive trading session in the red.

Relay Therapeutics announced that it had commenced an offering of $175 million worth of shares of its common stock late Tuesday. All of the shares in the stock offering are to be sold by the company, not by existing investors, it stated.

Wall Street Turns Bullish On RLAY

According to TheFly, Barclays raised its price target on Relay Therapeutics to $27 from $21 while maintaining an ‘Overweight’ rating, implying a potential upside of 124% from RLAY’s closing price on Tuesday. The firm cited growing confidence in zovegalisib following the company’s latest clinical update.

Barclays added that the mutant-selective cancer drug appears positioned as a potential “best-in-class” treatment for vascular anomaly patients, with an estimated $6 billion market opportunity, limited competition, and a possible accelerated regulatory pathway.

Citizens raised its price target on Relay Therapeutics to $21 from $19 and reiterated an ‘Outperform’ rating after zovegalisib posted a 60% response rate at 12 weeks with improved tolerability versus alpelisib.

The firm said the data support a larger vascular anomalies opportunity and a potential accelerated approval pathway, with regulatory feedback expected in the second half of 2026.

Analysts at JonesResearch upgraded Relay Therapeutics to ‘Buy’ from ‘Hold’ and raised its price target to $20 from $18, citing the company’s clinical update.

The firm said the results support zovegalisib’s efficacy potential and increased its estimated odds of success in vascular malformations to 40% from 20%.

RLAY’s Clinical Update For Zovegalisib

Relay Therapeutics reported initial Phase 2 data on Tuesday, showing that zovegalisib achieved a 60% volumetric response rate at 12 weeks in vascular anomalies patients, with nearly all patients experiencing symptomatic improvement.

The mutant-selective PI3Kα drug also demonstrated a favorable safety and tolerability profile that may support chronic use.

How Did Retail Traders React To RLAY?

Retail sentiment on Stocktwits around Relay Therapeutics trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

One bullish user brushed off the decline in RLAY stock following the offering, stating that there is nothing to be concerned about.

RLAY stock is up 43% year-to-date and 312% over the past 12 months. The iShares Russell 2000 ETF (IWM) is up 31% over the past 12 months, while the S&P Biotech ETF (XBI) is up 59%.

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