Simulations Plus price target raised to $56 from $51 at Craig-Hallum

Craig-Hallum analyst Matt Hewitt raised the firm’s price target on Simulations Plus to $56 from $51 and keeps a Buy rating on the shares after the company announced its acquisition of Pro-ficiency for $100M cash. The company’s recent history of M&A featured smaller, tuck-in type purchases that enhanced its existing franchises or helped the business expand into adjacent markets. Pro-ficiency’s price tag and their addressable market make the acquisition somewhat of an outlier, but at first blush the firm sees it as a great, strategic decision.