ICON Public (NASDAQ:ICLR) Downgraded to “Neutral” Rating by The Goldman Sachs Group

ICON Public (NASDAQ:ICLR) Downgraded to “Neutral” Rating by The Goldman Sachs Group

  • 24.03.2025 07:15
  • etfdailynews.com
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ICON Public (ICLR) was downgraded by Goldman Sachs from "buy" to "neutral," with a reduced price target of $200, while other analysts maintain varied ratings. The company reported strong quarterly earnings and is primarily held by institutional investors.

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Context

Analysis of ICON Public (NASDAQ:ICLR) Downgrade and Market Implications

Rating Downgrade

  • Goldman Sachs downgraded ICON Public from a "buy" rating to "neutral," lowering the price target from $250.00 to $200.00.
  • Other analysts have mixed ratings:
    • Royal Bank of Canada: "outperform" ($263.00)
    • William Blair: "outperform"
    • Truist Financial: "buy" ($262.00)
    • Barclays: "overweight" ($240.00)
    • Robert W. Baird: "neutral" ($203.00)
  • Average rating: "Moderate Buy" with a consensus target price of $272.50.

Financial Performance

  • Q4 EPS: $3.42 (vs. estimate $3.41).
  • Revenue: $2.04 billion (vs. estimate $2.04 billion).
  • Return on equity: 11.81%.
  • Net margin: 9.56%.

Analyst Consensus

  • Analysts predict 13.38 EPS for the current year.

Hedge Fund Activity

  • Natixis Advisors LLC increased stake by 6.7%, holding $37,279,000 worth of shares.
  • State of Tennessee Department of Treasury increased stake by 1.0%, holding $33,333,000.
  • Kornitzer Capital Management Inc. KS increased stake by 40.6%, holding $20,363,000.
  • Motley Fool Wealth Management LLC increased position by 2.3%, holding $13,342,000.
  • Foyston Gordon & Payne Inc increased position by 27.3%, holding $10,845,000.

Business Model

  • ICON Public is a clinical research organization providing outsourced development and commercialization services globally.
  • Services include strategic development, management, and analysis of programs across all clinical trial phases (Phase I-IV).

Market Implications

  • The downgrade may impact investor sentiment but reflects mixed analyst views.
  • Positive financial performance suggests operational stability despite potential market headwinds.
  • Consistent revenue and margin performance indicate strong demand for clinical research services.

Competitive Landscape

  • ICON faces competition from other CROs (Clinical Research Organizations) but maintains a strong position in the industry.
  • The downgrade may signal increased scrutiny of valuation, given the stock's reliance on future growth projections.

Long-term Effects

  • ICON's ability to maintain margins and secure long-term contracts will be critical for sustained growth.
  • The company's global presence and diversified service offerings provide a competitive advantage.

Regulatory Considerations

  • No explicit mention of regulatory changes impacting ICON in the text.