Rothschild Redburn upgrades ICON stock rating to Buy on expected market growth

Investing.com - Rothschild Redburn has upgraded ICON plc (NASDAQ:ICLR) from Neutral to Buy and raised its price target to $236.00 from $184.00. According to InvestingPro analysis, ICON appears undervalued at its current market cap of $13.8 billion, with a P/E ratio of 18.1.

The upgrade comes as Rothschild Redburn anticipates ICON’s gross bookings will return to year-over-year growth in the third quarter of 2025, suggesting that recent demand weakness has been cyclical rather than structural.

ICON, one of the three largest Contract Research Organizations (CROs) alongside IQVIA and Thermo Fisher’s PPD business, has recently underperformed relative to peers due to its exposure to Pfizer and COVID vaccine development, according to the research firm. With annual revenue of $8.1 billion, ICON maintains a strong market position despite recent challenges. InvestingPro data reveals 8 additional key insights about ICON’s performance and outlook.

While excess cancellation rates may continue to weigh on ICON through the third quarter, the firm expects net bookings to return to growth by the fourth quarter of 2025, with a clear positive trajectory emerging earlier. Investors should note that ICON’s next earnings report is scheduled for October 22, 2025, which could provide crucial updates on this outlook.

Rothschild Redburn predicts ICON’s revenue growth will resume in fiscal year 2026, as newer awards made with awareness of U.S. administration policies should not face the conversion delays that affected previous contracts.

In other recent news, ICON plc reported earnings for the second quarter of 2025 that exceeded expectations. The company achieved an earnings per share (EPS) of $3.26, surpassing the projected EPS of $3.19. Alongside this, ICON plc’s revenue also came in above forecasts, marking a strong financial performance for the quarter. The positive earnings report was a significant development for the company. This news follows a period of stock volatility, although specific stock price movements were not detailed. No mergers or acquisitions were reported in this period. Analyst reactions to these earnings results have not been specified in the available data. Further updates on analyst ratings or other company developments were not provided in the recent reports.

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