Morgan Stanley holds Schrödinger at Equal Weight as AI co-scientist Bunsen nears release
The bank maintains its $17 price target for the chemical simulation software provider, which projects second-quarter annual contract value between $19 million and $23 million.
Morgan Stanley has maintained an Equal Weight rating on Schrödinger, Inc. (SDGR), keeping its price target at $17 per share. The decision follows a reduction in the target from $19 on 14 May 2026, as the firm continues to evaluate the pharmaceutical software provider’s position within the broader artificial intelligence landscape.
The investment bank noted that while Schrödinger presents investment potential, it believes other artificial intelligence stocks currently offer greater upside potential with less downside risk. This assessment comes as Schrödinger reaffirms its full-year guidance for annual contract value (ACV) at $218 million to $228 million.
For the second quarter of 2026, the company projects ACV between $19 million and $23 million. This compares to $23.3 million in the prior-year period, a figure that included $5.0 million of contribution ACV. Schrödinger also expects revenue growth of 10% to 15% over 2025 levels, with drug discovery revenue forecast at $55 million to $65 million and operating expenses remaining below 2025 levels.
In a separate development, Schrödinger announced plans for an early access release of its artificial intelligence co-scientist, Bunsen, this summer. The firm described Bunsen as an agentic system designed to autonomously execute molecular discovery workflows. The technology is already in use internally across the company’s research programmes.
Schrödinger, Inc. provides chemical simulation software solutions to the pharmaceutical industry, operating through Software and Drug Discovery business segments. The company’s focus on integrating autonomous AI systems into molecular discovery workflows positions it within the growing sector of computational drug development.
