Simulations Plus Inc. (SLP) shares plummeted 16.81% in pre-market trading on Wednesday, following the company's fiscal first-quarter 2025 earnings release and an analyst downgrade.
The biopharmaceutical company reported its Q1 2025 results on Tuesday evening, missing earnings estimates despite robust revenue growth. While SLP reaffirmed its full-year 2025 guidance, investors appeared concerned over the earnings miss, leading to a selloff in the pre-market session.
Adding to the negative sentiment, KeyBanc analyst Constantine Davides lowered his price target on Simulations Plus to $35 from $40, though maintaining an Overweight rating on the stock. This analyst action likely exacerbated the pre-market selling pressure on SLP shares.
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