Analyst Note
| Anna Baran |Icon’s third-quarter results were ahead of our expectations, with the outlook for the rest of the year and 2021 also looking strong. We are increasing our fair value estimate for Icon to $152 per share after adjusting our model for flattish revenue growth in 2020 (instead of low-single-digit declines) and a stronger earnings outlook in 2021. We’re maintaining our narrow moat rating for Icon, which hinges on the intangible assets and high customer switching costs associated with the expertise needed to run large-scale, late-stage clinical trials.