Leerink Partners Starts Sutro Biopharma (STRO) at Outperform
Leerink Partners initiates coverage on Sutro Biopharma (NASDAQ: STRO) with a Outperform rating and a price target of $38.00.
The analyst comments "We are initiating coverage of Sutro Biopharma (STRO) with an Outperform rating and a $38 price target. Sutro is a development-stage biotech focusing on novel approaches to optimize antibody drug conjugates (ADC) to enhance the therapeutic window, maximizing efficacy and minimizing toxicities. STRO leverages a proprietary platform that enables higher dosing and optimizes drug exposure, primarily through site-specific conjugation and linker technologies that minimize circulating free payload and reduce off-target toxicity. The company underwent a strategic refocus in 2025, characterized by improved capital efficiency to advance its next-generation ADC portfolio. The investment thesis in the near term is linked to STRO-004, an ADC targeting tissue factor, with data expected in mid-2026 that could de-risk the asset and help validate the novel ADC platform. Beyond STRO-004, the pipeline includes STRO-006, an integrin beta 6 (ITGB6) ADC, and a dual-payload PTK7-targeting ADC, representing a novel approach to a validated target. We also ascribe value to Sutro’s partnership with Astellas (4503.T, Not Rated) on immunostimulatory ADCs (iADCs), which includes a clinical-stage TROP2 asset and provides potential milestone and royalty streams. Initiating OP with $38 PT."
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Shares of Sutro Biopharma closed at $23.95 yesterday.