Icon initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Icon (ICLR) with an Outperform rating and $263 price target Icon is among the largest of the global contract research organizations, helping its biopharma clients bring drugs to market more quickly, the analyst tells investors in a research note. The firm says the shares have traded down 25% over the last few months as “several transient factors” have weighed on near-term earnings growth and investor sentiment. RBC sees the fading of these headwinds setting the stage for a meaningful earnings reacceleration, which should also help re-rate Icon’s valuation.