Last Updated: 07 Nov 2024
Executive Summary
Sutro Biopharma (STRO) is a clinical-stage biopharmaceutical company focused on developing novel cancer therapies. The company's latest stock price is $4.14, indicating a potential upside based on analyst target prices. Sutro's strong pipeline and strategic partnerships position it well for growth, but its negative earnings and profitability metrics warrant caution.
Company Overview
Sutro Biopharma is headquartered in South San Francisco, California. It utilizes a proprietary cell-free protein synthesis platform to design and develop antibody-drug conjugates (ADCs) and other novel cancer therapies. The company's lead product candidate, STRO-002, is currently in Phase 2 clinical trials for the treatment of non-small cell lung cancer (NSCLC).
Fundamental Analysis
Revenue: Sutro's revenue has grown steadily in recent quarters, reaching $169.35 million in the trailing twelve months (TTM).
Earnings: The company is currently unprofitable, with a diluted EPS of -$1.85 TTM.
Profitability: Sutro's gross profit margin is negative (-0.735), indicating high production costs. Its operating margin is also negative (-1.894), reflecting operational inefficiencies.
Valuation: Sutro's price-to-sales ratio (1.858) and price-to-book ratio (2.068) are relatively high compared to industry peers.
Technical Analysis
Trend: Sutro's stock price has been trending sideways in recent months, with a 50-day moving average of $3.848 and a 200-day moving average of $4.029.
Support and Resistance: The stock has found support around $3.50 and resistance around $4.50.
Momentum: The stock's relative strength index (RSI) is currently in the neutral zone, indicating a lack of clear momentum.
Short Term Outlook
In the short term, Sutro's stock price may fluctuate within its current trading range. The company's upcoming clinical trial results and regulatory updates will be key catalysts to watch.
Long Term Outlook
Sutro's long-term outlook depends on the success of its clinical pipeline and its ability to generate revenue from commercialized products. The company's strategic partnerships with Roche and Merck provide validation for its technology and potential for future growth.
Analyst Recommendations
Analysts are generally bullish on Sutro Biopharma. Out of 11 analysts, 4 have a "Strong Buy" rating, 6 have a "Buy" rating, and 1 has a "Hold" rating. The average analyst target price is $12, representing a potential upside of 188%.
