Goldman Sachs analyst Robert Jones continues to see Icon PLC ICLR shares undervalued as he added the pharmaceutical company to America’s Conviction List. Jones has a Buy rating on the stock with a revised price target of $117.
“We see a path for ICLR to continue its outperformance given: (1) continued healthy industry fundamentals (solid pipeline growth and public/private funding remain well above averages); (2) non-PFE bookings and revenue strength; and (3) attractive M&A optionality both as a target and an acquirer given its sizeable balance sheet firepower,” he said.
Related Link: 6 Biotech Stocks Jefferies Says Are Undervalued
Key Takeaways
- Positive industry fundamentals- Funding, R&D growth, and rate of outsourcing all appear to be at healthy levels.
- Due to a lack of large-scale CRO assets, Icon PLC could be an attractive acquisition target.
- Jones’ theses is not dependent on margin expansions and he sees strong undervalued transaction outside of Icon PLC's top-client.
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