What 5 Analyst Ratings Have To Say About Aspen Technology

Across the recent three months, 5 analysts have shared their insights on Aspen Technology AZPN, expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $250.4, with a high estimate of $275.00 and a low estimate of $217.00. Marking an increase of 14.23%, the current average surpasses the previous average price target of $219.20.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Aspen Technology is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Aspen Technology. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Aspen Technology compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Aspen Technology's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Aspen Technology's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Aspen Technology analyst ratings.

All You Need to Know About Aspen Technology

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.

Financial Milestones: Aspen Technology's Journey

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, 2024, the company experienced a decline of approximately -13.41%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Aspen Technology's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -28.01%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Aspen Technology's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.47%, the company may encounter challenges in delivering 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 -0.43%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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