Icon (ICLR – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Charles Rhyee from TD Cowen downgraded the rating on the stock to a Hold and gave it a $157.00 price target.
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Charles Rhyee has given his Hold rating due to a combination of factors impacting Icon’s stock. Initially, there was optimism for a demand rebound in the latter half of 2025, which was expected to drive growth in 2026. However, further analysis revealed that the shift towards Functional Service Provider (FSP) models by large pharmaceutical companies is likely to have a significant impact on Icon’s growth in 2025 and 2026.
Additionally, the anticipated shift to FSP models is expected to hinder earnings growth beyond 2025, with large pharmaceutical companies’ transition potentially reducing EBITDA and revenue growth. Furthermore, the looming patent cliff and potential restructuring of pipelines could lead to muted research and development growth, particularly affecting Icon’s clients. Although growth in the biotech sector could offset some challenges, macroeconomic headwinds are expected to pose significant challenges, especially in 2025.
Rhyee covers the Healthcare sector, focusing on stocks such as Medpace Holdings, Charles River Labs, and CVS Health. According to TipRanks, Rhyee has an average return of -0.6% and a 44.36% success rate on recommended stocks.
In another report released on April 10, Barclays also downgraded the stock to a Hold with a $165.00 price target.