Icon selloff unwarranted given no material change to outlook, says BofA

BofA notes that Icon traded down sharply yesterday and attributes the underperformance as due to management commentary in a group session earlier in the day, including remarks that were interpreted to be a talk-down of market conditions and 2025 expectations. However, during the formal presentation, management addressed these concerns, and decisively reiterated their confidence in both their FY24 guidance and long-range plan, notes the analyst, who sees yesterday’s selloff as overdone and unwarranted given the lack of changes to the fundamental outlook. The firm maintains its estimates, $370 price target and Buy rating on Icon shares.