Resilience and Growth Prospects Drive Buy Rating for IQVIA Holdings Amid Industry Challenges

IQVIA Holdings (IQV – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Charles Rhyee from TD Cowen maintained a Buy rating on the stock and has a $168.00 price target.

Charles Rhyee’s rating is based on a combination of factors, including the resilience IQVIA Holdings has shown in the face of industry challenges. Despite the hesitancy in awarding new business within the pharma and biotech sectors, IQVIA has managed to maintain a normal range of cancellations, which is a positive indicator amidst the broader market uncertainties. The company’s Real World Evidence (RWE) segment has demonstrated significant growth, which is expected to partially offset the pressures faced by the Research & Development Solutions (RDS) segment.
Additionally, IQVIA’s management has acknowledged the challenges posed by delayed decision-making among large pharma clients and weaker funding in the biotech space. However, the company remains optimistic about its future prospects, with a substantial portion of its backlog expected to convert into revenue over the next 12 months. This potential for future growth, coupled with the company’s strategic efforts to secure new business, underpins Rhyee’s confidence in recommending a Buy rating for IQVIA Holdings.

According to TipRanks, Rhyee is a 2-star analyst with an average return of 0.4% and a 46.57% success rate. Rhyee covers the Healthcare sector, focusing on stocks such as Teladoc, CVS Health, and Icon.