Jefferies upgrades IQVIA stock to Buy on strong CRO business performance

Published 09/09/2025, 09:00
Jefferies upgrades IQVIA stock to Buy on strong CRO business performance

Investing.com - Jefferies upgraded IQVIA Holdings (NYSE:IQV) from Hold to Buy on Tuesday, raising its price target to $225.00 from $195.00. The $32 billion market cap company, which InvestingPro data shows maintains a "GOOD" overall financial health score, has seen strong returns over the recent quarter.

The research firm cited IQVIA’s Research & Development Solutions (R&DS) business as being the most consistent among contract research organizations (CROs), suggesting the company could be gaining additional market share in the biotechnology sector.

Jefferies noted that IQVIA has renewed all of its large pharmaceutical partnership agreements, with the firm’s checks indicating the company has maintained or grown wallet share in most cases. The research firm also highlighted labor force satisfaction and stability as evidence of this success.

While IQVIA’s Technology & Analytics Solutions (TAS) segment faces tougher comparisons in the second half of 2025, Jefferies reported that both peers and private checks confirm the commercial market is performing well, which should support revenue in-line with or above consensus estimates.

Despite Jefferies’ view that the CRO market will grow more slowly than historically (estimating 5% annually versus 7-8% after the Global Financial Crisis), the firm believes IQVIA is well-positioned, with its valuation remaining below previous cycles’ lows.

In other recent news, IQVIA Holdings reported impressive second-quarter 2025 earnings, surpassing expectations with an earnings per share of $2.81 compared to the forecasted $2.77. The company’s revenue also exceeded projections, reaching $4.017 billion against the anticipated $3.96 billion. These strong financial results have been a focal point for investors. Additionally, Evercore ISI raised its price target for IQVIA to $220, citing improved demand in the pharmaceutical and biotech sectors, which bolstered the company’s Research & Development Solutions revenues. Jefferies also increased its price target to $195, attributing the decision to stronger second-quarter bookings and enhanced performance in IQVIA’s Evidence-Based Practice segment. Meanwhile, TD Cowen raised its price target to $206, highlighting signs of stabilization in the macro environment as a contributing factor. These developments reflect a positive outlook from analysts regarding IQVIA’s recent performance and market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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