Rothschild Redburn upgrades Iconix Brand stock to Buy on expected demand growth

Published 03/09/2025, 13:26
Rothschild Redburn upgrades Iconix Brand stock to Buy on expected demand growth

Investing.com - Rothschild Redburn upgraded Iconix Brand (NASDAQ:ICON) from Neutral to Buy and raised its price target to $236.00 from $184.00, representing potential upside of 33%. The company, currently trading at $1.92 with a market cap of $4.2 million, has shown strong revenue growth of 25.6% in the last twelve months, though InvestingPro data indicates significant debt challenges.

The upgrade is based on an anticipated return to demand growth beginning in the third quarter of 2025, which Rothschild Redburn believes will spur increased investor confidence in the company. While the stock offers an attractive 14.58% dividend yield, InvestingPro analysis reveals 18 additional key insights about ICON’s financial health and valuation metrics.

In the same research note, Rothschild Redburn downgraded Medpace to Neutral following an approximately 50% share price increase after its second-quarter 2025 results, setting a new price target of $474, up from the previous $342.

The research firm noted that Medpace’s 33x price-to-earnings multiple for 2025 suggests demand has normalized, though overall biotech funding levels remain poor.

Rothschild Redburn maintained Buy ratings on IQVIA and Charles River Labs in the same sector review.

In other recent news, Icon Energy Corp has entered into a $20 million standby equity purchase agreement with YA II PN, Ltd., managed by Yorkville Advisors. This agreement allows Icon Energy the option to issue up to $20 million in common shares to Yorkville over a three-year period ending in August 2028. Icon Energy can request Yorkville to purchase shares in increments, referred to as "Advances," by providing written notice. The pricing of these shares will be determined based on either 96% of the average volume-weighted average price (VWAP) during a specified period or 97% of the lowest daily VWAP over three consecutive trading days, depending on the company’s choice at the time of each advance. These developments highlight Icon Energy’s strategic financial planning to potentially leverage equity funding over the coming years.

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