Simulations Plus downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc last night downgraded Simulations Plus (SLP) to Sector Weight from Overweight without a price target The company’s fiscal Q3 results and forward outlook highlighted the ongoing challenged biopharma end market environment, the analyst tells investors in a research note. The firm believes the challenges will impact Simulations Plus “more sharply” given its customer concentration and biotech exposure. KeyBanc sees weaker customer demand continuing in the near-to-middle-term with no recovery in the biotech end market.