Analyst Mani Foroohar of Leerink Partners reiterated a Buy rating on Schrodinger, with a price target of $32.00.
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Mani Foroohar has given his Buy rating due to a combination of factors including Schrodinger’s solid financial performance and promising pipeline developments. The company reported second-quarter results that were largely in line with expectations and reaffirmed its full-year guidance for drug discovery revenue and software revenue growth. Additionally, Schrodinger has managed to maintain a high software gross margin while significantly reducing its cash burn year-over-year, which indicates improved operational efficiency.
Furthermore, the ongoing beta testing of the predictive toxicology initiative suggests potential for new revenue streams. The company is also making progress in its clinical pipeline, with plans to discuss the recommended Phase 2 dose for SGR-1505 with the FDA and the upcoming presentation of initial Phase 1 data for other promising drug candidates. These strategic developments, along with the company’s strong cash position, underpin the increased price target from $31 to $32, supporting the Buy rating.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $30.00 price target.
SDGR’s price has also changed moderately for the past six months – from $25.890 to $19.340, which is a -25.30% drop .