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Disclaimer: This content is for informational and educational purposes only and should not be construed as financial or investment advice. Always do your own research and consult a licensed financial advisor before making investment decisions.
Disclosure: The author holds a long position in SDGR.
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SDGR

Analysis as of: 2026-01-14
Schrödinger, Inc.
Schrödinger develops physics-based computational chemistry software and applies it to partnered and internal drug discovery and materials design.
ai biotech cloud healthcare software
On Yahoo Finance ...
Jump to: Summary • Analysis • Opportunity • Risk • Trends • Third Party Analyst Consensus

Summary

From modeling toolkit to discovery workflow layer
The path to outperformance is a packaging and distribution story: more hosted delivery, deeper workflow embed, and premium trust features. Upside is meaningful if scale-up resumes; risk is bundling and slow enterprise adoption.

Analysis

Thesis
SDGR can compound by turning its “physics + AI” modeling stack into a higher-trust, higher-throughput R&D operating layer: more hosted/usage delivery, deeper workflow embed (incl. partner AI like TuneLab), and more outcome-linked collaboration economics—driving a cleaner recurring software story with retained upside optionality.
Last Economy Alignment
Beneficiary of cheaper cognition: prediction/iteration speed rises, and SDGR monetizes accuracy + workflow lock-in; risk is bundling by broader platforms.
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Opportunity Outlook

Average Implied 5-Year Multiple
3.8x (from 5 most recent analyses)
Reasoning
The non-linear upside is workflow gravity: more data/experiments captured, more models shipped, and more “trusted” compliance/security features attached. With TuneLab-style integrations and a push into hosted/usage, SDGR can look less like a niche tools vendor and more like a system layer for discovery execution—supporting faster revenue compounding and a modest multiple step-up versus today.
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Risk Assessment

Overall Risk Summary
The core bet is that SDGR becomes more than a modeling toolkit: an execution layer with recurring, attachable value (hosted, compliance, integrations). Risks cluster around timing (pharma scale-up), competitive bundling (platform stacks), and monetization friction (procurement, security/compliance liability, and collaboration lumpiness).
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Third Party Analyst Consensus

12-Month Price Target
$24.33
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