TD Cowen maintains Buy on IQVIA stock with $250 target

Tuesday, analysts at TD Cowen reiterated their Buy rating on IQVIA Holdings (NYSE:IQV) shares, maintaining a $250.00 price target. According to InvestingPro data, analyst targets for IQVIA range from $200 to $273, with the stock currently trading at $201.64, near its 52-week low of $187.62. InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value assessment.

The firm's analysts highlighted the company's strong positioning as it moves into the quarter, pointing to the recovery in Technology & Analytics Services (TAS) as a particularly encouraging sign. This segment, they noted, could see continued growth in the fourth quarter of 2024 and into 2025, driven by a potential increase in activity within more discretionary subsegments such as Real World Evidence ( RWE (LON:0HA0)) and Analytics & Consulting (A&C).

Despite potential market-related growth challenges in 2025, the analysts expressed confidence in the Research & Development Solutions (RDS) division's ability to weather these headwinds. They cited IQVIA's diversified focus on large pharmaceutical clients as a key factor that could help shield the company from impacts that might affect its peers more significantly.

The optimism from TD Cowen comes as IQVIA Holdings continues to navigate the dynamic healthcare sector, leveraging its broad range of services that include advanced analytics, technology solutions, and contract research services. With a market capitalization of $36.66 billion and a robust financial health score rated as "GREAT" by InvestingPro, the company maintains a strong position in the Life Sciences Tools & Services industry.

The company's focus on innovation and strategic partnerships has been a cornerstone of its business model, allowing it to offer integrated solutions to its clients in the pharmaceutical and healthcare industries.

IQVIA's commitment to providing valuable insights and services to its clients is reflected in its financial performance and the positive outlook from analysts. The company has demonstrated steady growth with revenue increasing by 3.1% over the last twelve months. For deeper insights into IQVIA's performance metrics and growth potential, InvestingPro subscribers can access comprehensive analysis and additional ProTips in the Pro Research Report, available exclusively on the platform. As the company prepares for the upcoming quarters, the endorsement from TD Cowen underscores the belief in IQVIA's strategy and its potential for sustained growth.

In other recent news, IQVIA has announced a strategic collaboration with NVIDIA (NASDAQ:NVDA) to enhance the application of artificial intelligence (AI) in healthcare and life sciences. This partnership is set to produce AI-driven solutions optimized for life sciences workflows, with initial solutions expected to reach the market within the calendar year. In financial news, IQVIA reported a year-over-year growth in Q3 revenue of 4.3%, reaching $3.896 billion, and a 14% increase in adjusted diluted EPS to $2.84, despite a significant cancellation.

The company's backlog expanded by 8% year-over-year to reach a record $31.1 billion. Analyst firms have made several adjustments in IQVIA's stock price targets. Truist Securities reduced the target to $261 but maintained a Buy rating, Jefferies kept its Hold rating while raising the price target to $200, TD Cowen held onto its Buy rating but lowered the price target from $255 to $250, and Baird adjusted the target down to $212, maintaining a Neutral rating. Deutsche Bank (ETR:DBKGn) reduced its target to $260 but reiterated a Buy rating. These recent developments continue to shape the dynamic environment for IQVIA.

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