Loading...
Back to narrative

SLP: Reinforced Revenue Outlook Will Drive Upside From Current Levels

SLP: Upcoming Earnings Guidance And Index Changes Will Drive Renewed Optimism

SLP logo
SLP
AnalystConsensusTarget
Not Invested
Published 27 Oct 2024

Update shared on 14 Dec 2025

Fair value Decreased 2.90%
Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
-35.3%
7D
-0.9%

Analysts have modestly reduced their price target on Simulations Plus to approximately 22.33 dollars from 23 dollars. This reflects a recalibration of valuation multiples, even as they acknowledge stronger revenue growth and a significantly improved profit margin outlook.

What's in the News

  • Simulations Plus reaffirmed its fiscal 2026 revenue guidance, expecting between 79 million and 82 million dollars in revenue (Corporate Guidance).
  • The company issued preliminary fiscal 2025 guidance, targeting revenue of about 79.1 million dollars with revenue growth of roughly 13 percent (Corporate Guidance).
  • Updated fiscal 2026 guidance points to more moderate revenue growth of 0 percent to 4 percent on expected revenue of 79 million to 82 million dollars (Corporate Guidance).
  • Simulations Plus is planning an Analyst and Investor Day to present its new product vision and AI driven solutions (Analyst/Investor Day).

Valuation Changes

  • Fair Value: Reduced slightly to about 22.33 dollars from 23 dollars per share, reflecting a modest downward adjustment in the intrinsic valuation estimate.
  • Discount Rate: Increased marginally to approximately 8.20 percent from 8.17 percent, indicating a slightly higher required rate of return.
  • Revenue Growth: Raised moderately to about 6.95 percent from 5.71 percent, signaling improved expectations for top line expansion.
  • Net Profit Margin: Increased sharply to roughly 29.42 percent from 12.41 percent, implying a substantially more optimistic view of long term profitability.
  • Future P/E: Reduced significantly to about 19.9x from 49.4x, suggesting a more conservative valuation multiple despite stronger growth and margin assumptions.

Have other thoughts on Simulations Plus?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.