H.C. Wainwright Keeps a Buy Rating on Sutro Biopharma Inc (STRO)

By Carrie Williams

H.C. Wainwright analyst Debjit Chattopadhyay maintained a Buy rating on Sutro Biopharma Inc (STROResearch Report) today and set a price target of $18. The company’s shares closed yesterday at $10.15.

Chattopadhyay said:

“Valuation and risks to our investment thesis. Our 12-month, $18 price target on shares of Sutro is derived from a 13-year DCF-based, sum-of-the-parts analysis. Our DCF is driven by: beta of 1.60, terminal growth rate of 0.5%, risk premium of 4.93%, calculated WACC of 10.3%, and tax rate of 15% beginning in FY 2029. Until clarity on Sutro’s collaboration with not rated) crystallizes, our $18 price target remains leveraged on the outcome of STRO-002’s safety and efficacy outcome, which represents approximately 67% of our rNPV of $12 per share.”

According to TipRanks.com, Chattopadhyay is a 2-star analyst with an average return of 0.1% and a 43.1% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Autolus Therapeutics Plc, and Voyager Therapeutics Inc.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Sutro Biopharma Inc with a $20 average price target, implying a 97.0% upside from current levels. In a report issued on May 7, Cowen & Co. also maintained a Buy rating on the stock.

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The company has a one-year high of $15.90 and a one-year low of $8.50. Currently, Sutro Biopharma Inc has an average volume of 22.46K.

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Sutro Biopharma Inc. engages in the drug discovery, development and manufacturing of pharmaceutical products. Its products technologies include XpressCF, anti-body drug conjugates, bispecifics & engineered antibodies and cGMP facility. The company was founded by James R. Swartz and Sutanto Widjaja in June 2003 and is headquartered in South San Francisco, CA.