Schrodinger Inc. (SDGR) shares surged by 5.39% in intraday trading on Thursday, driven by the company's robust Q4 2024 earnings report and analysts' optimism about its growth prospects.
Despite a decline in overall revenue for the full year 2024, Schrodinger reported impressive growth in its software business during the fourth quarter. Software revenue increased by 16% year-over-year to $79.7 million, while drug discovery revenue also saw a significant jump to $8.7 million, up from $5.5 million in Q4 2023.
Analysts from Piper Sandler and TD Cowen reaffirmed their Buy and Overweight ratings on SDGR, citing the company's strong software performance, new collaborations with leading pharmaceutical companies, and plans to launch new products, including predictive toxicology technology and enhancements to biologics discovery technologies.
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