4 Analysts Assess Aspen Technology: What You Need To Know

In the last three months, 4 analysts have published ratings on Aspen Technology AZPN, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $280.0, a high estimate of $315.00, and a low estimate of $265.00. Surpassing the previous average price target of $257.50, the current average has increased by 8.74%.

Investigating Analyst Ratings: An Elaborate Study

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: 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: 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: Analysts navigate through adjustments in price targets, providing estimates for Aspen Technology's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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.

Get to Know Aspen Technology Better

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.

A Deep Dive into Aspen Technology's Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, Aspen Technology faced challenges, resulting in a decline of approximately -13.41% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's 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 lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -28.01%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Aspen Technology's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.47%, the company may face hurdles in achieving optimal financial performance.

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: 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.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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