UPDATE: Sterne Agee Reiterates Neutral Rating, Raises PT on ICON plc
In a report published Monday, Sterne Agee Group reiterated its Neutral rating on ICON plc (NASDAQ: ICLR), and slightly raised its price target from $24.00 to $25.00.
Sterne Agee noted, “Not unlike our caution on PRXL, we must question ICLR's ability to provide accurate forecasts. However, ICLR's forecasting and cost management skills have proven quite conservative over the years. ICLR is projecting EBIT margins to return to levels achieved a few years back, while PRXL is projecting 2-3 year margins never achieved by the company. We use a 15x multiple on our CY14 EPS estimate to arrive at a $25 price target, which compares to an average 17x over the past 10 years.”
ICON plc closed on Friday at $28.29.
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