Sutro Biopharma: Transition to STRO-004–Driven Clinical Execution Warrants Hold as Long-Term Upside Meets Near-Term Uncertainty

H.C. Wainwright analyst Andres Y. Maldonado reiterated a Hold rating on Sutro Biopharma today and set a price target of $10.00.

Andres Y. Maldonado has given his Hold rating due to a combination of factors tied to Sutro Biopharma’s transition from a platform-focused story to one centered on clinical execution, particularly around STRO-004. He acknowledges that STRO-004’s entry into the clinic as a key, wholly owned asset—backed by compelling preclinical data showing strong tumor responses across several tissue factor–expressing cancers and the potential for higher drug exposure with manageable toxicity—supports the longer-term value proposition and justifies revisiting the valuation model after the reverse stock split.

At the same time, Maldonado highlights that the investment case now hinges on successful dose escalation, optimization, and indication selection in the ongoing Phase 1 basket trial, with the first meaningful human data not expected until mid-2026. This extended timeline, along with uncertainty around how quickly the program can reach biologically active doses and which tumor types will emerge as the most promising for registrational paths, limits near-term visibility and keeps the risk/reward profile more balanced than skewed to the upside. As a result, he views the shares as fairly reflecting current prospects for STRO-004 and the broader pipeline, leading him to maintain a Hold stance rather than moving to a more aggressive rating.

According to TipRanks, Y. Maldonado is a 4-star analyst with an average return of 13.4% and a 50.27% success rate. Y. Maldonado covers the Healthcare sector, focusing on stocks such as Protara Therapeutics, Syndax Pharmaceuticals, and Candel Therapeutics.

In another report released on December 20, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $9.00 price target.