Analyst Brendan Smith of TD Cowen maintained a Buy rating on Schrodinger (SDGR – Research Report), with a price target of $33.00.
Brendan Smith’s rating is based on Schrodinger’s strong performance and growth prospects in both its drug discovery and software segments. The company reported impressive fourth-quarter revenues that exceeded expectations, driven by significant growth in drug discovery revenues due to milestone recognitions and existing collaborations. Additionally, the software segment showed robust performance, particularly in hosted software, which attracted more customers transitioning from on-premise solutions.
Looking ahead, Schrodinger’s management has provided optimistic guidance for fiscal year 2025, anticipating continued growth in software revenues and a resurgence in drug discovery strength. The company’s ability to secure high-value partnerships and its increasing customer base among top global pharmaceutical companies further support the positive outlook. These factors, combined with the anticipated milestone achievements in their drug pipeline, underpin Brendan Smith’s Buy rating for Schrodinger’s stock.
Smith covers the Healthcare sector, focusing on stocks such as Halozyme, Repligen, and Ginkgo Bioworks Holdings. According to TipRanks, Smith has an average return of 4.1% and a 47.62% success rate on recommended stocks.