Bank of America Securities analyst Michael Ryskin has maintained their neutral stance on SDGR stock, giving a Hold rating on June 10.
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Michael Ryskin has given his Hold rating due to a combination of factors surrounding Schrodinger’s recent developments. The company announced promising initial clinical data from its Phase 1 study of SGR-1505, a MALT1 inhibitor for treating B-cell malignancies. This data, presented at the EHA Annual Congress, suggests therapeutic potential and reinforces the strength of Schrodinger’s pipeline. However, despite the positive data, the company’s shares fell significantly, likely influenced by a sales guidance cut from SLP, which impacted the broader Pharma and Biotech sectors.
Moreover, the Phase 1 study, which involved 49 patients, demonstrated an encouraging safety profile, with notable efficacy across various B-cell malignancies. Management highlighted safety as a key differentiator, and the study showed a 90% inhibition at steady state for patients treated with higher doses. Despite these promising results, the Hold rating reflects a balanced view of Schrodinger’s long-term disruptive potential against its current near-term growth prospects, as the company continues to navigate its clinical and strategic pathways.
In another report released on June 10, Morgan Stanley also maintained a Hold rating on the stock with a $31.00 price target.
SDGR’s price has also changed slightly for the past six months – from $21.070 to $22.835, which is a 8.38% increase.