Schrodinger price target lowered to $25 from $30 at BMO Capital

BMO Capital analyst Evan Seigerman lowered the firm’s price target on Schrodinger to $25 from $30 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results in BioPharma. The company’s shift towards internally-developed assets is reflected in its softer FY24 drug discovery revenue guide, but while this guidance no longer includes estimates for unrealized milestone payments, it is leaving room for upside in the back half of the year, the analyst tells investors in a research note. BMO adds that it remains positive on the potential of Schrodinger’s pipeline, with clinical execution driving share upside in 2024 and beyond.