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Investing.com - ICON plc (NASDAQ:ICLR) stock rating was downgraded from Buy to Hold by Jefferies on Tuesday, with the price target reduced to $175.00 from $220.00. According to InvestingPro data, the stock currently trades at 18.1x earnings, with analysts maintaining targets ranging from $180 to $243.
Jefferies cited multiple headwinds facing the clinical research organization, despite the stock trading at what it considers a relatively low valuation of approximately 13 times projected 2026 price-to-earnings ratio. While facing challenges, ICON maintains a strong financial health score of 3.17 (rated as GREAT by InvestingPro), with robust free cash flow yield and active share buyback programs.
The downgrade follows Jefferies’ checks revealing continued wallet share losses for ICON, which the firm believes undermines momentum from four partnership wins secured since the PRAH merger.
Cancellations are expected to reach approximately $1 billion in the third quarter and could remain elevated in the fourth quarter, potentially including stoppage of a large MASH program (suspected to be Novo Nordisk), mRNA vaccine cuts, and possibly next-generation COVID studies.
Jefferies also noted that survey work and channel checks indicate ICON’s competitive traction in the biotech sector remains sluggish, with declining job postings further supporting the firm’s cautious growth outlook.
In other recent news, ICON plc reported impressive second-quarter 2025 earnings, with earnings per share reaching $3.26, exceeding analysts’ expectations of $3.19. The company also reported revenue figures that surpassed projections. In leadership changes, ICON announced that Barry Balfe will assume the role of Chief Executive Officer effective October 1, 2025, as Dr. Steve Cutler steps down after 14 years, though he will remain on the Board as a non-executive director.
Rothschild Redburn has upgraded ICON’s stock rating from Neutral to Buy, raising the price target to $236.00, citing anticipated year-over-year growth in gross bookings for the third quarter of 2025. Meanwhile, BofA Securities reiterated a Buy rating with a $220.00 price target, maintaining a positive outlook despite recent management changes. The firm also noted that ICON confirmed its fiscal year 2025 guidance following a project termination update. These developments reflect significant activity within the company, drawing attention from investors and analysts alike.
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