ICON Shares Added To Goldman's 'Conviction Buy' List

Goldman Sachs analyst Robert Jones continues to see Icon PLC (NASDAQ: ICLR) shares undervalued as he added the pharmaceutical company to America’s Conviction List. Jones has a Buy rating on the stock with a revised price target of $117.

“We see a path for ICLR to continue its outperformance given: (1) continued healthy industry fundamentals (solid pipeline growth and public/private funding remain well above averages); (2) non-PFE bookings and revenue strength; and (3) attractive M&A optionality both as a target and an acquirer given its sizeable balance sheet firepower,” he said.

Related Link: 6 Biotech Stocks Jefferies Says Are Undervalued

Key Takeaways

• Positive industry fundamentals- Funding, R&D growth, and rate of outsourcing all appear to be at healthy levels.
• Due to a lack of large-scale CRO assets, Icon PLC could be an attractive acquisition target.
• Jones’ theses is not dependent on margin expansions and he sees strong undervalued transaction outside of Icon PLC's top-client.