Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - Truist Securities has lowered its price target on ICON plc (NASDAQ:ICLR) to $187.00 from $190.00 while maintaining a Buy rating on the stock. Currently trading at $152.45, InvestingPro analysis suggests the stock is undervalued, with a P/E ratio of 16.5x.
The firm cited several factors for the adjustment, including the evolving biopharma macroenvironment, slower than expected pace of recovery, BARDA study developments, and Irish law constraints on using free cash flow to fund share repurchases.
Truist Securities updated its 2025 revenue estimates to $7,910 million, unchanged from previous projections, while reducing its 2026 revenue forecast to $7,946 million from $8,070 million previously.
The firm’s adjusted EBITDA estimates for 2025 remain at $1,578 million, while 2026 projections were lowered to $1,629 million from $1,655 million. Adjusted earnings per share estimates were reduced to $13.08 from $13.18 for 2025 and to $13.97 from $14.45 for 2026.
The new 18-month price target of $187 is based on 10 times Truist’s 2027 adjusted EBITDA estimate for the clinical research organization.
In other recent news, ICON plc reported first-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $3.19, slightly above the consensus estimate of $3.18. However, revenue came in at $2 billion, which was slightly below expectations of $2.03 billion and marked a 4.3% year-over-year decline. Despite these challenges, ICON updated its full-year 2025 revenue guidance to range from $7.75 billion to $8.15 billion, reflecting a year-over-year decrease of 6.4% to 1.6%. Meanwhile, Citi analyst Patrick Donnelly adjusted the price target for ICON to $200 from $215, maintaining a Buy rating. This adjustment follows ICON’s management’s revised guidance, which excludes certain trials and accounts for a softer demand environment, leading to a reduction in revenue and EPS guidance by approximately $400 million and $0.50, respectively. In other developments, ICON announced its participation in the William Blair 45th Annual Growth Stock Conference, a significant event for discussing its recent performance and future prospects with investors. Additionally, ICON repurchased $250 million worth of stock during the quarter, and its net debt stood at $2.9 billion as of March 31. Despite a challenging market, ICON maintains a strong EBITDA margin of approximately 20% for the year, according to Citi’s analysis.
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