Should I Buy SLP? SLP 2026 Analysis

Should You Buy Simulations Plus Inc (SLP) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

17.710

1 Day change

-4.94%

52 Week Range

37.660

Analysis Updated At

2026/01/26

Simulations Plus Inc (SLP) is not a good buy for a beginner, long-term investor at this time. The stock faces significant negative catalysts, including insider selling, ongoing legal investigations, and a disappointing financial outlook. While there are some positive financial metrics, the lack of strong growth and the absence of clear recovery signals make it unsuitable for long-term investment under the current conditions.

Technical Analysis

The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral at 74.672, and moving averages are converging, showing no strong trend. The stock is trading near its first resistance level (R1: 20.956), suggesting limited upside potential in the short term.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Gross margin also improved significantly to 66.79%.

Neutral/Negative Catalysts

Significant insider selling (2417.79% increase), ongoing legal investigations for securities fraud, a $77M write-down, and disappointing financial performance in recent quarters. Analysts have downgraded the stock, citing muted growth and demand softness. The stock also lacks strong trading signals from Intellectia Proprietary Trading Signals.

Financial Performance

In Q1 2026, revenue dropped by -2.66% YoY to $18.42M. Despite this, net income increased to $676K (+228.16% YoY), and EPS rose to 0.03 (+200% YoY). Gross margin improved to 66.79% (+23.71% YoY), indicating better cost management.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Mixed to negative. TD Cowen raised the price target to $19 but maintained a Hold rating, citing a cautious outlook. BTIG downgraded the stock to Neutral, citing demand softness, limited recovery visibility, and multiple headwinds for 2026.

5 Analyst Rating

Wall Street analysts forecast SLP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SLP is 19 USD with a low forecast of 19 USD and a high forecast of 19 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

3 Hold

0 Sell

Moderate Buy

Current: 18.630

Low

Averages

High

Current: 18.630

Low

Averages

High

TD Cowen

Hold

maintain

$16 -> $19

AI Analysis

2026-01-08

Reason

TD Cowen

Price Target

$16 -> $19

AI Analysis

2026-01-08

maintain

Hold

Reason

TD Cowen raised the firm's price target on Simulations Plus to $19 from $16 and keeps a Hold rating on the shares. The firm adjusted price targets in the diagnostic tools group group as part of a Q4 preview. Investor sentiment continues to inflect upward with 2026 guidance updates "key for positioning within the sector recovery," the analyst tells investors in a research note. TD is most positive on stocks "with clear multi-year frameworks and multiple avenues for upside to derisked growth assumptions."

BTIG

Buy -> Neutral

downgrade

2025-12-18

Reason

BTIG

Price Target

2025-12-18

downgrade

Buy -> Neutral

Reason

BTIG downgraded Simulations Plus to Neutral from Buy without a price target. Despite early signs of stabilization in parts of the bio-pharma services market, Simulations Plus continues to face pressure, with declining recent revenues, a muted FY26 growth outlook, and a disappointing $77M write-down tied in part to a recent acquisition, the analyst tells investors in a research note Ongoing demand softness, limited visibility on a recovery, and multiple 2026 headwinds temper the firm's confidence in a near-term turnaround.

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SLP Should I Buy

SLP Should I Buy

Should You Buy Simulations Plus Inc (SLP) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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