Sutro Biopharma, Inc. (NASDAQ:STRO) Given Average Rating of "Buy" by Analysts

Key Points

• Analysts maintain a bullish stance: Thirteen brokerages give Sutro Biopharma an average “Buy” rating, with a consensus 12-month price target of $47.30 versus the recent $20.48 share price.
• Institutional ownership is high and growing: Hedge funds and other institutions own 96.99% of the stock, with investors including AQR Capital, Affinity Asset Advisors and Orbimed Advisors recently increasing or initiating positions.
• Financial results remain weak: Sutro reported a quarterly loss of $2.33 per share and $9.84 million in revenue, missing estimates of a $2.19 loss and $11.96 million in revenue; analysts expect continued substantial losses this year.

Shares of Sutro Biopharma, Inc. (NASDAQ:STRO - Get Free Report) have been given an average rating of "Buy" by the thirteen brokerages that are currently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, ten have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $47.30.

Several research analysts have weighed in on the company. Lifesci Capital raised Sutro Biopharma to a "strong-buy" rating in a research report on Friday, May 1st. Truist Financial began coverage on Sutro Biopharma in a research report on Thursday, June 11th. They set a "buy" rating and a $50.00 target price for the company. HC Wainwright lifted their target price on Sutro Biopharma from $28.00 to $50.00 and gave the stock a "buy" rating in a research note on Friday, May 15th. Citizens Jmp cut their price target on shares of Sutro Biopharma from $41.00 to $34.00 and set a "market outperform" rating on the stock in a report on Thursday. Finally, Stifel Nicolaus set a $48.00 price target on shares of Sutro Biopharma and gave the stock a "buy" rating in a report on Friday, August 7th.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Velan Capital Investment Management LP grew its position in shares of Sutro Biopharma by 2.0% during the 3rd quarter. Velan Capital Investment Management LP now owns 3,120,000 shares of the company's stock valued at $2,709,000 after acquiring an additional 60,000 shares during the period. UBS Group AG raised its holdings in shares of Sutro Biopharma by 14.0% in the 3rd quarter. UBS Group AG now owns 1,845,839 shares of the company's stock worth $1,602,000 after purchasing an additional 226,955 shares during the period. AQR Capital Management LLC raised its holdings in shares of Sutro Biopharma by 1,052.8% in the 1st quarter. AQR Capital Management LLC now owns 1,320,917 shares of the company's stock worth $859,000 after purchasing an additional 1,206,330 shares during the period. Affinity Asset Advisors LLC raised its holdings in shares of Sutro Biopharma by 42.9% in the 1st quarter. Affinity Asset Advisors LLC now owns 1,069,519 shares of the company's stock worth $26,642,000 after purchasing an additional 321,137 shares during the period. Finally, Orbimed Advisors LLC purchased a new position in Sutro Biopharma in the first quarter valued at approximately $19,956,000. 96.99% of the stock is currently owned by hedge funds and other institutional investors.

Sutro Biopharma Stock Performance

NASDAQ:STRO opened at $20.48 on Friday. Sutro Biopharma has a 52 week low of $7.15 and a 52 week high of $43.85. The firm has a 50-day moving average price of $26.86 and a two-hundred day moving average price of $25.95. The firm has a market cap of $339.35 million, a price-to-earnings ratio of -1.86 and a beta of 1.55.

Sutro Biopharma (NASDAQ:STRO - Get Free Report) last announced its 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 firm had revenue of $9.84 million during the quarter, compared to analysts' expectations of $11.96 million. As a group, sell-side analysts forecast that Sutro Biopharma will post -8.98 earnings per share for the current year.

Key Headlines Impacting Sutro Biopharma

Here are the key news stories impacting Sutro Biopharma this week:

• Positive Sentiment: HC Wainwright maintained a Buy rating and a $50 price target, implying substantial upside from recent levels. The firm raised its EPS forecasts for fiscal 2027 through 2030, including improving estimates for fiscal 2028, 2029 and 2030. HC Wainwright analyst estimates
• Positive Sentiment: Wedbush reaffirmed its Outperform rating and $60 price target, while Citizens JMP retained a Market Outperform rating despite reducing its target to $34. These targets indicate analysts still see meaningful potential if Sutro’s pipeline and commercial prospects develop as expected. Analyst rating updates
• Neutral Sentiment: A market roundup described analysts as having conflicting views on Sutro and other healthcare companies, highlighting a divergence between optimistic ratings and concerns about ongoing losses and execution risk. Analysts have conflicting sentiments on healthcare companies
• Negative Sentiment: HC Wainwright cut its Q3 and Q4 2026 EPS estimates to losses of $2.38 and $2.46, respectively, from $2.32 previously for both periods. Although later-year estimates improved, the revisions reinforce expectations for continued heavy cash burn and losses.
• Negative Sentiment: Sutro’s latest quarterly results missed expectations: adjusted loss per share was $2.33 versus the consensus loss estimate of $2.19, while revenue of $9.84 million fell short of the $11.96 million forecast. The disappointing results likely contributed to the selling pressure and elevated trading volume.

Sutro Biopharma Company Profile

Sutro Biopharma, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of novel biologic drug candidates in the fields of oncology and immunology. The company leverages a proprietary cell-free protein synthesis platform, XpressCF™, to design and produce complex, multi-specific proteins that include antibody-drug conjugates, bispecific antibodies, and cytokine fusion proteins. This platform enables rapid generation and optimization of protein therapeutics that may not be feasible with traditional cell-based expression systems.

Founded in 2003 and headquartered in South San Francisco, California, Sutro Biopharma has built a pipeline of immuno-oncology candidates in various stages of preclinical and clinical development.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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