Schrodinger, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst David Lebowitz from Citi downgraded the rating on the stock to a Hold and gave it a $20.00 price target.
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David Lebowitz has given his Hold rating due to a combination of factors impacting Schrodinger’s performance. The company has faced challenges with its internally developed drug pipeline, particularly with the proof-of-concept studies for its early-stage assets. The recent updates on these studies have not met expectations, raising doubts about the potential of Schrodinger’s proprietary drug portfolio. Additionally, the software segment is experiencing macroeconomic headwinds, which are affecting its growth prospects.
Despite the belief that Schrodinger’s software solutions hold value in the industry, the realization of this potential is expected to take more time. The setbacks in the drug development efforts, including the discontinuation of SGR-2921 due to adverse events, have weakened the argument for the company’s computational discovery platform. Consequently, the price target has been adjusted to $20 from $35, reflecting a more cautious outlook on the company’s future performance.
According to TipRanks, Lebowitz is a 4-star analyst with an average return of 5.1% and a 56.47% success rate. Lebowitz covers the Healthcare sector, focusing on stocks such as Incyte, Schrodinger, and Intellia Therapeutics.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $20.00 price target.