UPDATE: Jefferies Raises PT on PAREXEL on Tough Margin Outlook, Premium Valuation

In a report published Thursday, Jefferies analyst David Windley reiterated a Hold rating on PAREXEL (NASDAQ: PRXL), and raised the price target from $41.00 to $43.00.

In the report, Jefferies noted, “PRXL's revenue growth will slow markedly over the next year. Reaccelerating in FY15 will require more strategic deals. By contrast, margin expansion will have to accelerate to offset the revenue slowdown. That will be challenged by the low-margin impact of new strategic deals. The tough margin outlook and a premium valuation keeps us sidelined. PT to $42.”

PAREXEL closed on Wednesday at $46.17.