Simulations Plus price target lowered to $36 from $45 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Simulations Plus (SLP) to $36 from $45 and keeps a Buy rating on the shares following the company’s Q3 pre-release and lower FY25 guidance. The firm says that macro headwinds are affecting the company’s services segment with customers delaying contract starts, slow walking signing new contracts or pushing out clinical trials. Craig-Hallum notes that although the changes to the business environment are unfortunate, Simulations Plus’ software segment is holding up better and the business remains part of a growing market with the implementation of New Approach Methodologies, presenting an attractive opportunity to invest in the future of drug development.