Simulations Plus price target raised to $37 from $35 at KeyBanc

KeyBanc raised the firm’s price target on Simulations Plus (SLP) to $37 from $35 and keeps an Overweight rating on the shares. The firm notes shares are trading at 6-times FY25 EV/Street revenues, which is toward the lower end of its digital biology peers’ valuations, particularly since it expects high-teens revenue growth over the next several years, with adjusted EBITDA margins of 35%-plus. Also, Simulations Plus’s next twelve months revenue multiple is well below its IPO levels of about 20-turns in early 2021 and well below its next twelve months adjusted EBITDA levels of 65-turns, KeyBanc adds.