Street Calls of the Week
Investing.com - HSBC upgraded IQVIA Holdings (NYSE:IQV), a prominent player in the Life Sciences Tools & Services industry, from Hold to Buy and raised its price target to $235.00 from $195.00, citing three key reasons for the more bullish outlook. The company’s stock has shown strong momentum, posting a 27.75% return over the past six months, according to InvestingPro data.
The investment bank pointed to gradually clearing regulatory clouds over large pharmaceutical companies as a primary factor in the upgrade. HSBC specifically noted that President Trump’s September 30 agreement with Pfizer regarding Most Favored Nation drug pricing represents a relief for the sector.
HSBC also highlighted expectations that IQVIA’s third-quarter commentary on improving forward-looking indicators could confirm positive trends first observed in second-quarter results. The firm noted IQVIA continues to outperform its Contract Research Organization (CRO) peers.
The upgrade comes amid what HSBC describes as increased investor interest toward CROs, as outlined in its August 14 report on outsourcing demand in the sector. The bank believes this trend creates an attractive risk-reward setup for IQVIA.
HSBC added that anticipated additional interest rate cuts will likely support multiple expansion for IQVIA stock, further strengthening the investment case for the healthcare data and clinical research company.
In other recent news, IQVIA Holdings reported second-quarter 2025 earnings that surpassed expectations, with earnings per share reaching $2.81, exceeding the forecast of $2.77. The company’s revenue also beat projections, totaling $4.017 billion compared to the anticipated $3.96 billion. This strong performance reflects continued growth in IQVIA’s Research & Development Solutions (R&DS) business, which has been noted for its consistency among contract research organizations. Jefferies upgraded IQVIA’s stock from Hold to Buy, citing the robust performance of its R&DS segment and increased market share in the biotechnology sector. Evercore ISI raised its price target to $220, acknowledging improved demand in the pharmaceutical and biotech sectors, which contributed to solid R&DS revenues and bookings. TD Cowen also increased its price target to $206, highlighting stabilization in the macro environment. Furthermore, Jefferies adjusted its price target to $195, pointing to stronger second-quarter bookings in IQVIA’s Evidence-Based Practice segment. These developments indicate a positive outlook from analysts regarding IQVIA’s current market position and future potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.