Truist downgrades ICF on elevated risk post presidential debate

Truist analyst Tobey Sommer downgraded ICF International to Hold from Buy with a price target of $155, down from $168. The presidential election tilts toward former President Trump while a string of Supreme Court rulings, including ending the Chevron doctrine last Friday, blunt the Environmental Protection Agency’s authority and amplify uncertainty around regulatory direction and associated civil agency program management, the analyst tells investors in a research note. The firm now has less conviction in ICF’s high-single-digit organic growth in 2-3 years. It anticipates multiple pressure, saying the presidential debate “shifted the political outlook.” ICF shares have traded at a 7% premium to the group under President Biden versus an in-line multiple during the Trump administration, Truist points out.