STRO Should I Buy
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BUY now. Even with the post-market dip (14.82), STRO’s trend structure remains bullish (SMA_5 > SMA_20 > SMA_200) and Wall Street sentiment has turned sharply positive with major upgrades/price-target resets. With no proprietary buy signal today, this is not a “must-buy today” momentum trigger, but for an impatient buyer the current pullback near the pivot (15.08) offers a reasonable entry with upside toward the next resistance zone (~16.89) if sentiment follows the recent analyst catalysts.
Trend is constructive: moving averages are stacked bullish (SMA_5 > SMA_20 > SMA_200), indicating an upward bias/positive regime. RSI_6 at 46.6 is neutral, suggesting the stock is not overbought and has room to move either way. MACD histogram is slightly positive (0.0169) but contracting, implying upside momentum has cooled and price may chop or pull back before a renewed push. Key levels: Pivot 15.08 (price ~14.82 is slightly below), Support S1 13.27 (next major downside reference), Resistance R1 16.89 (first meaningful upside target). Overall: bullish trend, short-term momentum paused—dip-buy setup rather than breakout confirmation.
Analyst-driven catalyst: Citizens upgraded to Outperform with a $23 PT (2026-01-20), citing platform value/cash per share and a “rapid return” to clinic; Deutsche Bank reiterated Buy and massively raised PT to $51 (2025-12-
on STRO-004 entering the clinic and dual-payload ADCs expected in
Pipeline/clinical progression focus: STRO-004 entering the clinic and 2026 ADC milestones are clear narrative drivers.
Cost discipline: headcount reductions to preserve cash were highlighted by analysts as supportive for runway/value.
Near-term momentum is not strong: MACD is positive but contracting, and price is slightly below the pivot while trading down post-market (~-4%).
Fundamental risk still present: company remains deeply loss-making (EPS -6.7 in the latest quarter), so the stock is highly dependent on clinical progress and financing/runway perceptions.
Options market is expensive/volatile (very high IV), which reflects expectation of big moves and can accompany sharp drawdowns as well as rallies.
Latest quarter: 2025/Q3. Revenue grew to ~$9.69M (+13.77% YoY). Losses improved but remain large: net income was -$56.86M (an improvement vs prior year), and EPS improved to -6.7 (still significantly negative). Gross margin shown as 100% suggests revenue mix (often collaboration/other revenue in biotech) rather than a mature product margin story. Net: top-line improved and losses narrowed YoY, but the business remains in development-stage economics where clinical execution is the key driver.
Recent trend is strongly positive: (1) Deutsche Bank raised its price target dramatically to $51 from $5 while maintaining Buy (2025-12-17), explicitly tied to clinical entry for STRO-004 and 2026 pipeline milestones. (2) Citizens upgraded to Outperform from Market Perform with a $23 PT (2026-01-20), emphasizing platform differentiation, cash-per-share valuation support, and operational reset/cost actions. Wall Street pros view: meaningful upside optionality from the platform + upcoming clinical catalysts and improved cash discipline. Cons view (implied): the thesis is still catalyst-dependent with ongoing losses and prior clinical/program ‘reset’ risk. Politician/influential trading: no recent congress trading data available; hedge fund and insider activity are described as neutral with no significant recent trends.
