In a report released today, Andrew Obin from Bank of America Securities reiterated a Buy rating on Aspen Technology, Inc. (AZPN – Research Report), with a price target of $235.00.
Andrew Obin has given his Buy rating due to a combination of factors including Aspen Technology, Inc.’s strong position in the grid software market and anticipated revenue synergies from the partnership with Emerson. Despite a slight miss in annual contract value (ACV) for the third quarter, Obin notes that the company’s ACV still grew sequentially and maintains a positive outlook for the next quarter. He also highlights the company’s Digital Grid Management (DGM) segment, which is expected to continue its robust year-over-year ACV growth, as a key driver for future performance.
Further supporting the Buy rating, Obin acknowledges Aspen Technology’s better-than-expected third-quarter revenue and adjusted earnings per share (EPS), which surpassed consensus estimates. The company’s bookings also showed significant year-over-year improvement. Although the full-year ACV and EPS estimates have been modestly reduced, Obin sees this as a conservative recalibration, with the company still on track for strong year-over-year growth. With these factors in mind, he reiterates a confident outlook on Aspen Technology’s stock with a revised price objective, believing that the company is well-positioned for continued success and is likely to yield a positive return for investors.
In another report released on May 1, Loop Capital Markets also assigned a Buy rating to the stock with a $220.00 price target.
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Aspen Technology, Inc. (AZPN) Company Description:
Aspen Technology is a leading global supplier of software solutions that optimize asset design, operations, and maintenance in complex industrial environments. The company’s AspenOne software platform helps improve process-oriented plant efficiency, and thereby lower capital intensity, increase working capital efficiency, and improve margins. Aspen was founded in 1981 and serves more than 2,300 customers in 32 countries.
