Leerink Partners analyst Michael Cherny reiterated a Buy rating on Icon on August 13 and set a price target of $235.00.
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Michael Cherny has given his Buy rating due to a combination of factors that highlight Icon’s resilience and potential for growth despite recent setbacks. The delay in the BARDA trials is seen as part of the broader instability in government-sponsored vaccine trials, which does not necessarily reflect on Icon’s service quality. The company has managed to maintain its guidance, which suggests improved operational performance, as evidenced in their recent earnings report.
Furthermore, Cherny believes that Icon’s current market valuation does not fully reflect its long-term growth potential. Although the price target has been slightly reduced from $240 to $235 due to revised estimates, the unchanged target multiple indicates confidence in the company’s future prospects. The expectation is that the ongoing uncertainty around the BARDA trials will eventually be resolved, removing a significant overhang on the stock.
According to TipRanks, Cherny is a 4-star analyst with an average return of 3.5% and a 52.56% success rate. Cherny covers the Healthcare sector, focusing on stocks such as DENTSPLY SIRONA, Doximity, and Cardinal Health.
In another report released on August 13, Bank of America Securities also maintained a Buy rating on the stock with a $220.00 price target.