Schrodinger initiated with an Outperform at TD Cowen

TD Cowen initiated coverage of Schrodinger with an Outperform rating and $42 price target. The analyst says the company differentiates itself as a “ground truth”-driven drug discovery company, leveraging a unique physics- and chemistry-based platform accelerated by artificial intelligence capabilities. A premium valuation is justified given Schrodinger’s “high-quality” partnerships, capital-efficient software business model and platform capabilities alongside potential technology “scarcity value,” the analyst tells investors in a research note.