Citi Affirms Buy Rating on Schrödinger (SDGR) amid Expanded Collaboration with Ajax Therapeutics

Schrödinger, Inc. (NASDAQ:SDGR) is one of the top 10 medical AI companies to buy according to analysts. On July 17, analysts at Citi reiterated a ‘Buy’ rating on the stock and a $39 price target. The positive stance follows the company’s announcement of a strategic collaboration with Ajax Therapeutics.

David Smart/Shutterstock.com

The two companies are joining forces as part of an expanded research collaboration that entails Ajax licensing an undisclosed JAK kinase target discovered using Schrödinger’s proprietary computational platform. The companies are to collaborate on the discovery of a new target, with Ajax handling clinical development and commercialization.

In return, Schrödinger will be eligible to receive discovery and development milestones, sales milestones, and single-digit royalties on net sales. Citi analysts view the expanded collaboration as a positive, expecting it to generate long-term value, thus the ‘Buy’ rating.

Schrödinger, Inc. (NASDAQ:SDGR) is a medical company that leverages AI and machine learning (ML) to accelerate drug discovery and materials science. It combines physics-based computational modeling with AI/ML techniques to predict molecular properties, design novel molecules, and optimize formulations. This allows them to rapidly and accurately discover high-quality molecules for drug development and materials applications.

READ NEXT: 10 Best Farmland and Agriculture Stocks to Buy According to Billionaires and 10 Best Stocks to Buy Amid Gold Rally.

Disclosure: None. This article is originally published at Insider Monkey.