Schrodinger (SDGR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Evan Seigerman from BMO Capital maintained a Buy rating on the stock and has a $28.00 price target.
Evan Seigerman has given his Buy rating due to a combination of factors that highlight Schrödinger’s robust business model and growth prospects. The company has demonstrated strong software revenue trends, which are crucial given the inherent volatility in drug discovery revenues. This stability is largely attributed to the increasing annual contract value of their software services, particularly from anchor clients who contribute significantly to larger contract values.
Schrödinger’s dual strategy of drug discovery and software licensing is proving beneficial, as evidenced by the expansion of their software platform and its perceived utility by large clients. The company’s total annual contract value saw a substantial increase, signaling that clients are deriving significant value from their offerings. Furthermore, upcoming clinical data releases, such as the initial data for SGR-1505, are expected to be pivotal, potentially enhancing Schrödinger’s position in the biotech sector and showcasing the potential of their internally developed assets.
In another report released yesterday, Craig-Hallum also reiterated a Buy rating on the stock with a $30.00 price target.