Icon price target lowered to $220 from $235 at Leerink

Leerink lowered the firm’s price target on Icon (ICLR) to $220 from $235 and keeps an Outperform rating on the shares. The firm thinks Icon’s negative stock reaction is due to worries on pricing/gross margins that are not new, and, in Leerink’s opinion, are likely overblown relative to the valuation. The firm remains positive on the risk/reward and thinks the improved gross awards/RFP flow should help re-establish a better growth profile. The quarter did not include any negative surprises and the improved gross bookings wins/book-to-bill was encouraging, Leerink adds.