Critical Insights From Schrodinger Analyst Ratings: What You Need To Know

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Schrodinger SDGR in the last three months.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Schrodinger, revealing an average target of $36.88, a high estimate of $50.00, and a low estimate of $26.00. Observing a downward trend, the current average is 12.19% lower than the prior average price target of $42.00.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Schrodinger's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Schrodinger. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Schrodinger compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Schrodinger's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Schrodinger's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Delving into Schrodinger's Background

Schrodinger Inc is a healthcare-based software company. Its operating segments are Software and Drug discovery. Through the Software segment, the company is focused on selling software to transform drug discovery across the life sciences industry and customers in materials science industries. In the Drug discovery segment, it is engaged in generating revenue from a portfolio of preclinical and clinical programs, internally and through collaborations. It generates revenue from the sales of software solutions and from research funding and milestone payments from its drug discovery collaborations.

Unraveling the Financial Story of Schrodinger

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Schrodinger showcased positive performance, achieving a revenue growth rate of 15.11% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Schrodinger's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -145.7%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Schrodinger's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -10.56%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Schrodinger's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -7.58%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Schrodinger's debt-to-equity ratio is below the industry average. With a ratio of 0.23, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.