
Simulations Plus (SLP) Stock Forecast & Price Target
Simulations Plus (SLP) Analyst Ratings
Bulls say
Simulations Plus Inc. demonstrates a positive outlook driven by its robust decade-long experience in utilizing data to enhance the accuracy of its pharmaceutical research software, which is expected to result in higher market growth than the overall industry. The company's anticipated margin expansion is particularly notable in its legacy biosimulation services, fueled by improved utilization rates, as staffing constitutes a significant portion of its expenses. Moreover, the increasing adoption of biosimulation in both preclinical and clinical programs is projected to bolster the company’s growth trajectory, with expectations for adjustments in EBITDA and EPS indicating operational strength and financial performance resilience.
Bears say
Simulations Plus has reported an adjusted EBITDA margin of 30.9% for the first three quarters of fiscal 2024, which is significantly below the company’s long-term average and its target of 35%-40%, indicating potential efficiency and profitability concerns. Key risks affecting the company's outlook over the next three to five years include a possible reduction in biotech funding, margin erosion due to an increased focus on service contracts over software sales, and challenges in attracting talent in a competitive environment. Additionally, projected revenue for fiscal 2025 has been slightly lowered to $91.3 million, highlighting the impact of anticipated diminished spending in the biotech and pharmaceutical sectors on Simulations Plus's near-term performance.
This aggregate rating is based on analysts' research of Simulations Plus and is not a guaranteed prediction by Public.com or investment advice.
Simulations Plus (SLP) Analyst Forecast & Price Prediction
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