Aspen Technology price target lowered to $180 from $196 at Piper Sandler

Piper Sandler lowered the firm’s price target on Aspen Technology to $180 from $196 and keeps a Neutral rating on the shares. Optimism on the the second half of the year selling environment and ramping sales capacity took a sharp turn from the Q2 update in February, as elongating sales cycles and lower spending willingness prompted Q3 ACV growth to miss expectations. In response, Aspen revised down most growth metrics including 2024 ACV guidance down to 9%-plus from the prior 11.5%-plus, the firm notes. While Piper believes it’s more than likely ACV results will improve from here as the calendar year progresses, Q3 results are reflective of the continued softness in Aspen’s end markets and the uncertainty of forecasting a durable double-digit ACV growth rate across multiple periods.