UPDATE: Deutsche Bank Raises PT to $27 on Aspen Technology; Growth Momentum

Deutsche Bank increases its price target from $26 to $27 on Buy-rated Aspen Technology

as the company increases guidance on its quarterly report. Deutsche Bank comments, "Aspen Tech reported 3Q license only TCV (LTCV) of 2.9% q/q vs our estimate of 1.4%, despite typical weak seasonality. LTCV growth reached 14% y/y, which was an acceleration off 13% in 2Q12 and 11% in 3Q11. The company increased guidance for LTCV to 11-12% for FY12 from prior >10%. We believe these estimates are conservative as they imply <2% q/q expansion, which would be the slowest of this year and compared to 5% posted in 4Q11. We believe that our 13% LTCV growth estimate is very much achievable given the company's momentum." AZPN closed at $22.78 on Wednesday.