William Blair analyst Max Smock has reiterated their bullish stance on SLP stock, giving a Buy rating today.
Max Smock has given his Buy rating due to a combination of factors that highlight the positive outlook for Simulations Plus. The company reported a strong fiscal second-quarter performance, surpassing revenue expectations with a notable increase in both software and service sales. This growth was achieved despite a challenging macroeconomic environment, particularly in the biopharma sector, which has been marked by cautious spending.
The company’s management has reaffirmed its fiscal 2025 guidance, projecting significant revenue growth and maintaining a healthy adjusted EBITDA margin. Additionally, the improvement in services revenue, following several quarters of pressure, and strong services bookings indicate a positive trend. Although there are concerns about the visibility of future bookings due to clients booking services further in advance, the overall performance and management’s confidence in achieving their targets support the Buy rating.
In another report released today, BTIG also maintained a Buy rating on the stock with a $41.00 price target.