Icon initiated with an Outperform at Leerink

Leerink initiated coverage of Icon with an Outperform rating and $379 price target. Icon is a market leader in the contract research organization space, particularly the late-stage clinical space, and solidified its position with the 2021 acquisition of PRA Health for $12B, the firm notes. Leerink further points out that the company’s customer base, overweight to large pharma historically, has driven durable sales and adjusted EBITDA growth for Icon over the past several years despite lumpy/slower biotech funding that has impacted smaller customers. The company’s long-term guidance, unveiled in May 2024, looks attainable to the firm and calls for continued robust top-line growth and adjusted EBITDA expansion.