TD Cowen analyst Brendan Smith maintained a Buy rating on Schrodinger (SDGR – Research Report) yesterday and set a price target of $33.00.
Brendan Smith has given his Buy rating due to a combination of factors that highlight Schrodinger’s strong performance and future potential. The company’s impressive first-quarter results, with a significant year-over-year increase in revenues, were driven by both software and drug discovery segments. Notably, Schrodinger’s software revenues benefited from early renewals with large pharmaceutical companies and increased interest in computational model offerings, indicating a growing demand for their innovative solutions.
Furthermore, management’s reaffirmation of the FY25 guidance reflects confidence in the company’s ability to sustain growth despite macroeconomic uncertainties. The anticipated launch of their predictive toxicology software aligns well with recent FDA initiatives, potentially providing an additional boost to their market position. These factors, combined with minimal expected exposure to geopolitical risks and tariffs, underpin Brendan Smith’s positive outlook on Schrodinger’s stock.