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

By Austin Angelo

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 opened today at $10.33.

Chattopadhyay wrote:

“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 Celgene and Merck 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 3-star analyst with an average return of 1.3% and a 45.6% success rate. Chattopadhyay covers the Healthcare sector, focusing on stocks such as Global Blood Therapeutics, Voyager Therapeutics Inc, and Mersana Therapeutics Inc.

Sutro Biopharma Inc has an analyst consensus of Strong Buy, with a price target consensus of $20.

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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 23.39K.

Based on the recent corporate insider activity of 16 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STRO in relation to earlier this year.

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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.