TD Cowen Has Lowered Expectations for Simulations Plus (NASDAQ:SLP) Stock Price

Key Points

• TD Cowen lowered its price target on Simulations Plus from $19.00 to $16.00 and maintains a "hold" rating; overall analyst sentiment is mixed with a consensus "Hold" and a $24.40 average price target.
• Operational results are mixed: Q2 beat estimates (EPS $0.35 vs. $0.27; revenue $24.29M vs. $21.66M) and management highlighted AI tailwinds, but FY2026 guidance was trimmed to $0.75–$0.85 EPS (consensus ~ $1.01), posing downside risk to forward estimates.

Simulations Plus (NASDAQ:SLP - Get Free Report) had its price objective cut by equities research analysts at TD Cowen from $19.00 to $16.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a "hold" rating on the technology company's stock. TD Cowen's price target would suggest a potential upside of 21.86% from the company's previous close.

Several other analysts also recently weighed in on the company. BTIG Research downgraded Simulations Plus from a "buy" rating to a "neutral" rating in a research note on Thursday, December 18th. Citigroup reaffirmed a "market perform" rating on shares of Simulations Plus in a research note on Tuesday, January 6th. Zacks Research downgraded Simulations Plus from a "strong-buy" rating to a "hold" rating in a research note on Monday, February 2nd. Finally, Wall Street Zen lowered shares of Simulations Plus from a "buy" rating to a "hold" rating in a research note on Saturday, April 4th. Three analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $24.40.

Simulations Plus Price Performance

Shares of SLP stock traded up $0.14 during trading hours on Friday, reaching $13.13. The stock had a trading volume of 654,423 shares, compared to its average volume of 326,934. Simulations Plus has a twelve month low of $11.09 and a twelve month high of $36.45. The firm has a 50-day simple moving average of $12.56 and a 200-day simple moving average of $15.98. The firm has a market capitalization of $264.53 million, a PE ratio of -4.08 and a beta of 1.19.

Simulations Plus (NASDAQ:SLP - Get Free Report) last released its quarterly earnings data on Thursday, April 9th. The technology company reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.08. The business had revenue of $24.29 million for the quarter, compared to analysts' expectations of $21.66 million. Simulations Plus had a negative net margin of 81.66% and a positive return on equity of 14.02%. On average, equities analysts anticipate that Simulations Plus will post 1.09 earnings per share for the current year.

Institutional Investors Weigh In On Simulations Plus

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Corient Private Wealth LLC bought a new stake in Simulations Plus in the fourth quarter worth about $397,000. Caitong International Asset Management Co. Ltd grew its position in Simulations Plus by 343.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,983 shares of the technology company's stock worth $73,000 after buying an additional 3,084 shares during the last quarter. Invesco Ltd. grew its position in Simulations Plus by 34.7% in the fourth quarter. Invesco Ltd. now owns 26,641 shares of the technology company's stock worth $486,000 after buying an additional 6,863 shares during the last quarter. Susquehanna Portfolio Strategies LLC grew its position in Simulations Plus by 43.7% in the fourth quarter. Susquehanna Portfolio Strategies LLC now owns 67,002 shares of the technology company's stock worth $1,221,000 after buying an additional 20,389 shares during the last quarter. Finally, Janus Henderson Group PLC acquired a new position in Simulations Plus in the fourth quarter worth approximately $973,000. 78.08% of the stock is currently owned by institutional investors.

Simulations Plus News Summary

Here are the key news stories impacting Simulations Plus this week:

• Positive Sentiment: Q2 beat — Simulations Plus reported $0.35 EPS vs. $0.27 consensus and revenue of $24.29M versus $21.66M estimates; software revenue grew and headline results show continued top-line momentum. Business Wire Q2 Release
• Positive Sentiment: Management highlights AI-driven opportunity — executives flagged AI as a tailwind for biosimulation demand and product roadmap, which could boost future bookings and product monetization. MSN AI Outlook
• Neutral Sentiment: Investor materials available — the company posted its earnings slide deck and a full call transcript, useful for digging into customer cadence, backlog/renewal trends and margin drivers. Press Release/Slide Deck Earnings Call Transcript
• Negative Sentiment: FY2026 guidance trimmed — management lowered FY EPS to $0.75–$0.85 (consensus ~ $1.01) and guided revenue to $79.0M–$82.0M (vs. consensus ~$80.4M). The EPS range is meaningfully below Street expectations and creates downside risk to forward estimates and valuation.

Simulations Plus Company Profile

Simulations Plus, Inc NASDAQ: SLP specializes in advanced modeling and simulation software tailored to the pharmaceutical, biotechnology and chemical industries. The company's flagship products include ADMET Predictor, a quantitative structure-activity relationship (QSAR) tool for predicting absorption, distribution, metabolism, excretion and toxicity properties, and GastroPlus, a physiologically based pharmacokinetic (PBPK) modeling platform for simulating drug absorption and pharmacokinetics.

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