Model Transitions Like AZPN Presents An Attractive Entry Points, J.P. Morgan Reports

J.P. Morgan reports that in its experience, model transitions like Aspen Technology, Inc.'s AZPN have presented attractive entry points. “Aspen Tech is not the first software company to embark on a subscription model transition,” J.P. Morgan writes. “One recent example is Cadence (CDNS/OW/$12), which announced its model transition in July 2008. “To date, the stock has returned 60% compared to the NASDAQ's 42%, showing, we believe, that model transitions can be attractive entry points. Aspen Tech reminds us of CDNS, and we still view current levels as attractive entry points in the stock.” Aspen Technology currently trades at $13.58.
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Posted In: Analyst Ratingsaspen technologyJ.P. Morgan
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