H.C. Wainwright analyst Andres Y. Maldonado reiterated a Hold rating on Sutro Biopharma (STRO – Research Report) today and set a price target of $2.00.
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Andres Y. Maldonado has given his Hold rating due to a combination of factors related to Sutro Biopharma’s current strategic positioning and future prospects. The company is in a transitional phase, marked by a shift towards a next-generation ADC pipeline, particularly focusing on STRO-004. While this transition is promising, the near-term catalysts are primarily preclinical, which contributes to the Hold rating.
Despite the challenges posed by the discontinuation of luvelta, Sutro’s management has taken steps to refocus its narrative around emerging data from STRO-004, STRO-006, and a dual-payload ADC platform. The company’s financial health, with a clean balance sheet and sufficient cash runway into early 2027, supports its long-term potential. However, the next 12 months are crucial for validating the company’s refined strategy, which justifies the cautious stance of a Hold rating.