Sutro Biopharma's (STRO) Outperform Rating Reiterated at Wedbush

Key Points

• Wedbush reaffirmed its “Outperform” rating on Sutro Biopharma and maintained a $60 price target, implying potential upside of approximately 434% from the prior close.
• Sutro shares rose 6.9% to $11.25, but remain well below their 50-day and 200-day moving averages and near the lower end of their yearly range.
• Analyst sentiment is broadly positive, with a consensus “Buy” rating and average price target of $49.50, although the company recently missed quarterly earnings and revenue expectations.

Sutro Biopharma (NASDAQ:STRO - Get Free Report)'s stock had its "outperform" rating reaffirmed by stock analysts at Wedbush in a report issued on Thursday, Benzinga reports. They currently have a $60.00 target price on the stock. Wedbush's target price points to a potential upside of 433.57% from the company's previous close.

A number of other research firms have also recently weighed in on STRO. Stifel Nicolaus set a $48.00 price target on Sutro Biopharma and gave the company a "buy" rating in a report on Friday, August 7th. Citizens Jmp dropped their price target on Sutro Biopharma from $41.00 to $34.00 and set a "market outperform" rating for the company in a report on Thursday, August 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sutro Biopharma in a report on Wednesday, August 5th. Mizuho raised shares of Sutro Biopharma to a "strong-buy" rating in a research note on Wednesday, September 16th. Finally, Citigroup reissued a "market outperform" rating on shares of Sutro Biopharma in a research note on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Sutro Biopharma has an average rating of "Buy" and an average price target of $49.50.

Sutro Biopharma Stock Up 6.9%

STRO stock traded up $0.73 during midday trading on Thursday, reaching $11.25. 16,683 shares of the company's stock traded hands, compared to its average volume of 265,348. The company has a 50-day simple moving average of $18.38 and a two-hundred day simple moving average of $25.46. Sutro Biopharma has a 1-year low of $7.15 and a 1-year high of $43.85. The company has a market cap of $186.45 million, a price-to-earnings ratio of -0.94 and a beta of 1.49.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The company reported ($2.33) earnings per share for the quarter, missing analysts' consensus estimates of ($2.19) by ($0.14). The company had revenue of $9.84 million during the quarter, compared to analysts' expectations of $11.96 million. Equities research analysts forecast that Sutro Biopharma will post -8.41 EPS for the current year.

Institutional Trading of Sutro Biopharma

Several hedge funds have recently modified their holdings of the stock. Merck & Co. Inc. acquired a new position in Sutro Biopharma in the second quarter valued at approximately $9,042,053. Seven Fleet Capital Management LP acquired a new position in Sutro Biopharma in the second quarter valued at approximately $5,283,000. Perceptive Advisors LLC acquired a new position in Sutro Biopharma in the first quarter valued at approximately $17,818,000. Affinity Asset Advisors LLC lifted its holdings in Sutro Biopharma by 42.9% in the first quarter. Affinity Asset Advisors LLC now owns 1,069,519 shares of the company's stock valued at $26,642,000 after buying an additional 321,137 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in Sutro Biopharma in the second quarter valued at approximately $1,373,000. 96.99% of the stock is owned by institutional investors.

Sutro Biopharma Company Profile

Sutro Biopharma, Inc is a clinical-stage biopharmaceutical company focused on developing targeted cancer therapies. The company uses its proprietary cell-free protein synthesis and protein-engineering platforms to design and manufacture complex biologic medicines, including antibody-drug conjugates (ADCs) and immuno-oncology treatments.

Sutro's principal product candidate is luveltamab tazevibulin, also known as luvelta or STRO-002, an ADC designed to target folate receptor alpha, a protein expressed in several cancers.