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.