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Investing.com - BofA Securities has reiterated a Buy rating and $220.00 price target on ICON plc (NASDAQ:ICLR), maintaining its positive outlook despite recent management changes. According to InvestingPro data, ICON currently trades at $171.79, with analysts’ targets ranging from $180 to $243, suggesting potential upside. The company maintains a "GREAT" financial health score of 3.23 out of 5.
The research firm indicated that ICON’s press release did not mention fiscal year 2025 guidance, but management confirmed it stands by comments issued in mid-August following the BARDA/HHS update regarding project termination. With a P/E ratio of 17.54 and strong free cash flow yield, InvestingPro analysis indicates ICON appears undervalued relative to its Fair Value.
BofA Securities noted that ICON previously stated the BARDA project termination would negatively impact second-half revenues but reaffirmed guidance partly because half of the 10,000 participants have already been dosed, with only new subject screening being halted.
The firm interpreted these comments as suggesting ICON would still meet guidance but likely toward the lower end, and their recent conversation with management pointed in the same direction.
BofA Securities maintained its Buy rating based on ICON’s leading market position and compelling valuation, while acknowledging near-term pressure could persist due to macroeconomic and policy uncertainty.
In other recent news, ICON plc reported better-than-expected earnings for the second quarter of 2025, with earnings per share reaching $3.26, surpassing the analyst forecast of $3.19. The company’s revenue also exceeded projections, signaling strong financial performance. Additionally, Rothschild Redburn upgraded ICON’s stock rating from Neutral to Buy, raising the price target to $236.00. This upgrade is based on the expectation that ICON’s gross bookings will return to year-over-year growth in the third quarter of 2025, indicating that recent demand weaknesses are likely cyclical. In leadership news, ICON announced that Barry Balfe will become the new Chief Executive Officer effective October 1, 2025, succeeding Dr. Steve Cutler. Cutler will remain on the Board as a non-executive director to assist with the transition. These developments reflect significant changes and expectations for ICON plc moving forward.
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