Simulations Plus initiated with an Overweight at KeyBanc

KeyBanc analyst Scott Schoenhaus initiated coverage of Simulations Plus with an Overweight rating and $47 price target. Simulations is a provider of bio-simulation software and technology-enabled services, the analyst tells investors in a research note. The firm sees the company and the biosimulation industry in the early growth stages with less than 5% of an $8B total addressable market penetrated. Biopharma continues to adopt this technology to conduct virtual trials to inform decisions, cut down on time and R&D spend, and improve safety and efficacy, says KeyBanc. It believes the recent pullback provides a “unique entry point for long-term investors focused on high-quality growth.”