Benchmark Initiates Coverage on Aspen Technology (AZPN) with a Hold

October 16, 2009 8:43 AM EDT

Benchmark initiates coverage on Aspen Technology (OTC: AZPN) with a Hold.

Benchmark analyst says, "We are initiating coverage of AZPN with a Hold rating and expectations that the Company will earn non-GAAP EPS of $0.61 on revenue of $341 million in FY09. For FY10, we expect non-GAAP EPS of $(0.99) on total revenue of $176 million...Despite the cloudy outlook for process industry cap-ex, chemical producers and oil & gas companies are shifting their focus from capacity expansion to improving existing plants’ productivity, a trend that bodes well for AZPN. That’s because the Company’s process simulation and optimization technologies offer a compelling return on investment for plant owner/operators that are looking to maximize the performance of their existing plants by optimizing production runs, increasing production yields and cutting emissions and energy consumption...While AZPN has executed well in the downturn and we are positive on the Company’s long-term opportunity, we believe the shares may trade in a narrow band over the near term until there’s more clarity around the three main issues that are likely to drive the stock price over the short run: the firm’s accounting restatement, business model transition and likely shelf registration."

To see more analyst ratings on AZPN Click Here.

Aspen Technology, Inc., together with its subsidiaries, develops and supplies software and services that enable process companies to design, operate, manage, and optimize their business processes worldwide.

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