In a report released on April 30, Michael Cherny from Leerink Partners maintained a Buy rating on Icon (ICLR – Research Report), with a price target of $235.00.
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Michael Cherny has given his Buy rating due to a combination of factors reflecting both challenges and opportunities for Icon. Despite facing significant hurdles, such as a high cancellation rate and a disappointing book-to-bill ratio, the company has shown resilience in managing its operations effectively. This is evident in its ability to deliver adjusted EPS that surpassed both internal estimates and market consensus.
Furthermore, while the company’s guidance has been lowered, the exclusion of contributions from large COVID-19 vaccine trials indicates a more conservative and realistic approach to future projections. The valuation of Icon’s stock already accounts for these challenges, suggesting that the current price may offer a favorable entry point for investors. Cherny’s analysis suggests that while the operating environment is difficult, the company’s strategic management and current valuation present a compelling case for a Buy rating.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $160.00 price target.
ICLR’s price has also changed moderately for the past six months – from $227.890 to $151.440, which is a -33.55% drop .