Andrea Newkirk, an analyst from Goldman Sachs, has initiated a new Hold rating on Schrodinger (SDGR).
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Andrea Newkirk’s rating is based on Schrodinger’s innovative approach in utilizing a physics-based and machine learning platform to aid in drug development and materials science. The company’s software business is a key revenue generator, yet there is uncertainty regarding its future growth trajectory. This uncertainty stems from the need for clearer strategies to enhance customer engagement and expand the customer base with higher annual contract values through advanced technology offerings.
Additionally, Newkirk is keeping an eye on Schrodinger’s drug discovery pipeline, which recently showed promising early-phase data in hematologic malignancies. The anticipation of forthcoming data in solid tumors could further substantiate the platform’s capabilities and open doors for potential partnerships. However, the current macroeconomic conditions might dampen demand, contributing to the Hold rating as the market awaits more definitive outcomes.
In another report released on September 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $20.50 price target.