ICON Shares Added To Goldman's 'Conviction Buy' List

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.