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1-Star Price

PREMIUM

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Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Icon Reports Healthy Q2 and Stronger 2021 Guidance After PRA Deal Closes; Raising FVE to $185

Rachel Elfman Equity Analyst

Analyst Note

| Rachel Elfman |

Icon reported second-quarter revenue of $871 million, representing over a 40% increase from the prior-year period. The company has completed its acquisition of PRA Health Sciences, and management announced an updated 2021 outlook with revenue guidance of $5.3 billion-$5.5 billion for the combined company. Due to the improved outlook for the year and greater synergies from the acquisition, we’ve increased our fair value estimate to $185 per share from $173. Our narrow moat and stable moat trend ratings are unchanged.

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Company Profile

Business Description

Icon is a global late-stage contract research organization that provides drug development and clinical trial services to pharmaceutical, biotechnology, and medical device firms. While the vast majority of its revenue comes from clinical research, Icon also offers ancillary services such as laboratory and imaging capabilities. The company is headquartered in Ireland.

Contact
South County Business Park, Leopardstown
Dublin, 18, Ireland
T +353 12912000
Sector Healthcare
Industry Diagnostics & Research
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type
Employees 38,000

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