William Blair analyst Max Smock has reiterated their bullish stance on SLP stock, giving a Buy rating yesterday.
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Max Smock has given his Buy rating due to a combination of factors that highlight Simulations Plus’s financial performance and potential for growth. The company reported third-quarter revenue that surpassed both the firm’s estimates and the preliminary guidance, driven by stronger-than-expected software and service sales. Despite a decline in organic sales, the adjusted EBITDA and EPS figures significantly exceeded expectations, indicating robust operational efficiency.
Additionally, while the company faces macroeconomic challenges and cautious customer spending, the software segment shows resilience with expected growth. Although there are concerns about renewal rates and potential softening in fiscal 2026, the reaffirmed sales guidance suggests a positive outlook for revenue growth. These elements collectively contribute to the Buy rating, reflecting confidence in the company’s ability to navigate current uncertainties and capitalize on its strengths.
Smock covers the Healthcare sector, focusing on stocks such as Simulations Plus, Charles River Labs, and Icon. According to TipRanks, Smock has an average return of -14.6% and a 37.50% success rate on recommended stocks.
In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $25.00 price target.