On Tuesday, BTIG initiated coverage on IQVIA Holdings (NYSE:IQV), assigning a Buy rating to the stock along with a price target of $285.00. The firm highlighted IQVIA's position as a leading provider of biopharmaceutical data analytics services, which are integral to clinical trial research. IQVIA's extensive scale, comprehensive capabilities, and global reach were cited as key differentiators that set the company apart from its competitors.
IQVIA's ability to leverage its data for various purposes, including price discovery, market analysis, and enhancing patient and site selection for clinical trials, was emphasized as a core strength. The firm's data analytics services are expected to support clinical trial, research, and commercialization efforts more effectively than many of its peers.
The analyst also pointed to the broader stock market rally as a positive sign that macro uncertainties are likely to diminish, potentially leading to increased demand within the Technology and Analytics (TAS) sector. This outlook is seen as favorable for IQVIA's business prospects.
Furthermore, the leadership team at IQVIA received praise for their proven experience and ability to drive significant revenue growth. Despite the company's large scale, with approximately $15 billion in annual revenue, it has managed to maintain an organic year-over-year revenue growth rate of around 10%, excluding impacts from unusual items such as COVID-19 and foreign exchange movements.
In addition, IQVIA's projected EBITDA margin for 2025 is estimated to be around 23%, which is notably higher than the average of approximately 15% for the healthcare information technology (HCIT) sector. Based on these financial metrics, the analyst believes that IQVIA's stock is currently undervalued.
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