Schrodinger initiated with bullish view at KeyBanc, here’s why

KeyBanc analyst Scott Schoenhaus initiated coverage of Schrodinger with an Overweight rating and $38 price target. The analyst initiated coverage of the digital biology and tech-enabled drug discovery sector with a positive outlook based on several factors, including growing demand trends for technology solutions toward accelerating timeframes and reducing costs in drug discovery process given increasing computation power and robust artificial intelligence algorithms. The firm believes investors should maintain longer-term investment horizons with these names given the recovering industry backdrop combined with elevated interest rates and financial models that can be capital-intensive. It sees certain companies as better positioned than others for maintaining healthy growth, some with stable software revenues streams and others with collaborative and/or integral pipelines.