Where Aspen Technology Stands With Analysts

4 analysts have shared their evaluations of Aspen Technology AZPN during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $197.75, a high estimate of $213.00, and a low estimate of $180.00. Witnessing a positive shift, the current average has risen by 5.75% from the previous average price target of $187.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Aspen Technology by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Aspen Technology. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Aspen Technology compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Aspen Technology's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Aspen Technology analyst ratings.

Delving into Aspen Technology's Background

Aspen Technology is a global leader in asset optimization software, enabling customers within capital-intensive industries to design, operate and maintain their functions to meet their profitability, safety, and sustainability goals. The heritage business of AspenTech was founded in 1981 and provides software solutions purposed to optimize engineering, manufacturing, and supply chain and asset management functions. In 2021, Emerson Electric traded over $6 billion in cash and its Open Systems International (digital grid management) and subsurface science and engineering businesses for 55% of AspenTech's shares. The new AspenTech is the combination of heritage Aspen, OSI, and SSE and serves more than 3,000 customers across 40 countries.

Breaking Down Aspen Technology's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Challenges: Aspen Technology's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -0.6%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Aspen Technology's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -13.85%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -0.27%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Aspen Technology's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.24%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.01, Aspen Technology adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.