Schrodinger initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Schrodinger (SDGR) with a Neutral rating and $19 price target The company’s software business serves as the core revenue driver, but visibility on the forward growth profile is limited, and the firm is looking for clarity on efforts to deepen customer utilization and grow the number of customers with larger annual contract value via expanded and differentiated technology/platform offerings, the analyst tells investors in a research note. Goldman adds that it is also monitoring progress with the proprietary drug discovery pipeline, noting recent Phase 1 SGR-1505 data in hematologic malignancies, together with upcoming initial Phase 1 SGR-3515 data in solid tumors, if positive, could further validate Schrodinger’s platform.