Aspen Technology price target raised to $260 from $225 at BofA

BofA raised the firm’s price target on Aspen Technology to $260 from $225 and keeps a Buy rating on the shares after having attended AspenTech’s investor day in Boston. Following the event, at which the company pointed to a double-digit annual contract value, or ACV, growth target with lower cyclicality, the firm is applying a higher multiple to its calendar year 2025 estimate to reflect reduced cyclicality and rising grid exposure, noting that it set its target multiple at a premium to the peer average given Aspen’s higher margins and faster free cash flow growth compared to peers.