Morgan Stanley analyst David Lebowitz initiated coverage of Schrodinger with an Equal Weight rating and $43 price target. While the "intriguing" company's software business is a "high growth and potentially transformational offering" that can potentially change the way pharma and biotech companies discover drugs and its own drug discovery business offers an option with upside, a lack of clarity with respect to the Street's view on valuation and the shares' high volatility since the company's IPO keeps him on the sidelines for now, Lebowitz tells investors.