David Larsen, an analyst from BTIG, maintained the Buy rating on Simulations Plus. The associated price target is $25.00.
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David Larsen has given his Buy rating due to a combination of factors including Simulations Plus’s recent financial performance and future guidance. The company reported fourth-quarter results that slightly exceeded market expectations, with total revenue and adjusted EBITDA both coming in ahead of consensus estimates. Despite some challenges earlier in the year, management has reiterated its guidance for fiscal year 2026, indicating expected revenue growth and stable EBITDA margins.
Moreover, the company is positioned to benefit from the bio-pharma industry’s increasing reliance on AI and technology to enhance R&D success rates. While there are concerns about potential headwinds affecting the first quarter of fiscal 2026, such as seasonal revenue declines, the overall outlook remains positive. The company’s strategic alignment with industry needs and its healthy services backlog contribute to the Buy rating, despite the persistent challenges in top-line growth.