Barclays initiates Schrodinger stock with Overweight rating on upcoming catalysts

Published 14/08/2025, 09:12
Barclays initiates Schrodinger stock with Overweight rating on upcoming catalysts

Investing.com - Barclays initiated coverage on Schrodinger (NASDAQ:SDGR) with an Overweight rating and a $25.00 price target on Thursday. The stock, currently trading at $19.84 with a market capitalization of $1.46 billion, has shown volatile price movements according to InvestingPro data.

The research firm identified two potential catalysts expected in the fourth quarter of 2025 that could drive share appreciation for the drug discovery company. While not currently profitable, Schrodinger maintains a strong financial position with a healthy current ratio of 3.3 and more cash than debt on its balance sheet.

The first catalyst is initial Phase 1 data for SGR-2921 (CDC7) in R/R AML and high-risk MDS, with Barclays projecting peak probability-adjusted sales of approximately $150 million by 2035, representing $2 of their price target.

The second catalyst involves initial Phase 1 data for SGR-3515 (Wee1/Myt1) in advanced solid tumors, which Barclays also projects could reach peak probability-adjusted sales of approximately $150 million by 2035, accounting for $1 of their price target.

Barclays assigns a 70% likelihood to positive data for both drug candidates, suggesting each could drive the stock value up by $2, while negative results could decrease the stock value by $1-$1.2. The company has demonstrated solid revenue growth of 18.59% over the last twelve months. For deeper insights into Schrodinger’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Schrodinger Inc . reported its second-quarter earnings for 2025, revealing a stronger-than-expected financial performance. The company announced a net loss of $0.65 per share, which was better than analysts’ projections of a $0.80 loss, resulting in an 18.75% positive surprise. Schrodinger’s revenue for the quarter reached $54.8 million, surpassing the anticipated $52.02 million by 5.34%. Despite these positive results, the company’s stock experienced a decline in after-hours trading. These developments highlight Schrodinger’s ability to outperform earnings and revenue forecasts, even as its stock reacts otherwise.

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