Shares of Simulations Plus (SLP) plummeted 9.61% in pre-market trading on Thursday, following the company's announcement of a significant cut to its full-year revenue outlook and a subsequent price target reduction by analysts.

The biosimulation and intelligence solutions provider revealed on Wednesday that it now expects fiscal 2025 revenue to be between $76 million and $80 million, a substantial decrease from its previous guidance of $90 million to $93 million. This revised outlook falls well short of the $90.3 million consensus estimate from analysts surveyed by FactSet. Additionally, Simulations Plus projected its fiscal Q3 revenue to be in the range of $19 million to $20 million, considerably below the $22.8 million analyst expectation.

Adding to the downward pressure, Stephens lowered its price target on Simulations Plus to $28 from $42, although it maintained an Overweight rating on the shares. This adjustment reflects the firm's reassessment of the company's near-term growth prospects in light of the reduced revenue guidance. The combination of disappointing financial projections and the analyst downgrade has evidently shaken investor confidence, leading to the sharp pre-market decline.