William Blair downgrades Aspen Technology on chemical softness

William Blair analyst Matthew Pfau downgraded Aspen Technology to Market Perform from Outperform without a price target. Although the company’s fiscal Q3 results were decent given the macro environment, there are "several moving pieces" that could hold the stock back over the next several quarters, the analyst tells investors in a research note. The chemicals end market has been weakening for Aspen over the past several quarters and could continue to be a headwind into fiscal 2024, contends the firm. In addition, the company for the first time is seeing some integration pains associated with the Emerson transaction, adds Blair. It says that although the updated guidance accounts for these issues, "there is the potential for more issues down the road."