Schrödinger, Inc.: Royalty Growth Is The Key Overlooked Factor For Long-Term Value

About: Schrödinger, Inc. (SDGR)
by: Another Mountain's Rock Investing
This article is exclusive for subscribers.
Another Mountain's Rock Investing
Long-term horizon, Research Analyst, Tech, Growth

Schrödinger, Inc. has exhibited a stock price slide since July, even as revenue growth continues above expectations.

Many investors look at the in-house drug discovery pipeline as the future catalyst; I find that royalty payment revenues are overlooked.

By calculating the potential royalties accrued by 2030, I estimate a fair price of $195-$234, with short-term upside potential of 46%.

I recommend continuing to add shares as necessary, and positive news will likely see a large jump in price.

Falling Price Creates Perfect Buying Opportunity

Schrödinger, Inc. (SDGR) is currently one of my favorite companies in my personal long-term portfolio, and it comprises over 3.5% weight. The stock has been trending down