Sutro Biopharma downgraded to Market Perform from Outperform at Citizens JMP

Citizens JMP downgraded Sutro Biopharma (STRO) to Market Perform from Outperform without a price target The firm cites the company’s reprioritization of the portfolio, starting with the discontinuation of the luvelta program, which was the lead program driving its valuation methodology, for the downgrade. It believes Sutro should be valued on its current pipeline of assets, the first of which will enter the clinic in the second half of 2025. Until clinical data are reported in 2026, the shares will trade in line with the broader biotech market, contends Citizens.