Simulations Plus (SLP)

[dickmilde]

Täglich has an updated research report:

Maintaining Buy rating and increasing our 12-month price target to $17.35 per share from $13.35 due to increased sector valuation and forecasted EPS growth to FY19.
SLP’s long-term growth should be driven by the increased use of software tools and consulting analytics for drug discovery, as well as the expansion, integration, and development of new products from the acquisition of Cognigen Corp. in FY15 and the 4Q17 acquisition of DILIsym Services, Inc.
On June 1, 2017 the company acquired North Carolina based DILIsym Services, Inc., a provider of drug- induced liver injury simulation software and related consulting services. In calendar 2016, DILIsym generated net earnings of approximately $720,000 on revenue in excess of $3 million.
SLP has penetrated nearly 20% of the pharmaceutical, biotechnology, and generic companies that would be potential users of its software and/or consulting services. In April 2017, an agreement with Quantum Bio Solutions of South Korea gave SLP the opportunity to sell its software tools to at least 40 new organizations.
3Q17 EPS (reported 7/10/17) was $0.12 per share, on a 12.2% rise in sales to $6.7 million. We forecasted sales of $6.5 million and EPS of $0.11. In the year-ago period, SLP reported EPS of $0.11 on sales of $6 million
We increase our FY17 sales and EPS forecasts to $22.9 million (prior was $22 million) and $0.32 per share (prior was $0.31) due to 3Q17 results and the anticipated 4Q17 contribution from the acquisition of DILIsym.
For FY18, we increased by $0.04 per share our EPS projection to $0.40 on sales growth of 19% to $27.2 million (prior was $24.2 million) due to a full year contribution from DILIsym.
In FY19, we project EPS of $0.48 per share on sales growth of 10.5%. Our accelerated EPS growth forecast reflects an increase in software customers and consulting services reaching at least 33% of total sales.
See the full report at:
http://www.taglichbrothers.com/companyreports/simplus/simplus-07192017.pdf