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Simulations Plus initiated with an Overweight at Stephens
The Fly

Simulations Plus initiated with an Overweight at Stephens

Stephens analyst Jeff Garro initiated coverage of Simulations Plus (SLP) with an Overweight rating and $39 price target Simulations Plus addresses a core problem in life sciences clinical research, namely the high costs to develop drugs with low probability of success, and has a demonstrated ROI by using computer models predicting the interactions between the human body and drugs to accelerate clinical research, the analyst tells investors. The firm sees signs of the end market stabilizing, a favorable combination of recent sales execution and differentiated growth strategy, and a coming reversal in EBITDA margins leading to multiple expansion as “this thesis plays out,” the analyst added.

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