Leerink downgrades Icon to Market Perform given near-term overhang

Leerink analyst Michael Cherny downgraded Icon (ICLR) to Market Perform from Outperform with a price target of $105, down from $220, after the company announced an ongoing internal investigation into accounting practices, leading to a suspension of FY25 guidance and Q4 results being released by April 30th. The firm notes that the scope of the accounting review appears to be contained, although the murkiness of the path forward is still in place. But given this uncertainty, combined with ongoing pressures on cancellations and margins, Leerink says it simply cannot pitch this stock despite the depressed valuation vs. historical levels.