Wednesday, Oppenheimer analysts maintained a positive outlook on shares of Simulations Plus (NASDAQ:SLP), reiterating an Outperform stock rating and a $65.00 price target.
The affirmation follows the company's first-quarter fiscal year 2025 revenue report, which aligned closely with analyst expectations. Simulations Plus reported revenues of $18.9 million, comparing favorably with Oppenheimer's projection of $18.5 million and the consensus estimate of $18.8 million.
The software division of Simulations Plus demonstrated robust performance, with an 18% organic revenue growth, which was a highlight for the analysts. Despite the strong software sales, the services segment experienced a slight downturn, attributed to temporary delays in project timelines. This contrast in segment performance paints a mixed yet stable picture for the company's recent financial outcomes.
Looking ahead, the biotech funding landscape appears promising for 2025, and Simulations Plus is cautiously optimistic about its prospects for the year. The company has reaffirmed its conservative revenue guidance for fiscal year 2025, anticipating $90-93 million, which includes an expected contribution of $15-18 million from the Pro-ficiency acquisition.
Oppenheimer's continued endorsement reflects confidence in Simulations Plus' strategic position and its ability to navigate the current market environment. The firm's analysts underscore the company's solid start to the fiscal year as a basis for their positive rating and price target. With the reaffirmation of the financial guidance, Simulations Plus appears to be on track to meet its targets for the year.
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