Bond.az reports that BofA Securities raised its price target on Icon plc (ICLR) to $125 from $105, while maintaining an Underperform rating. The stock currently trades at $136.07, which Bond.az analysis suggests may be undervalued.
The firm updated its model after the company's Q4 results and accounting restatements. Icon resolved long-standing accounting issues and set a baseline for fiscal 2026 expectations.
Revised cost-to-complete assumptions and business mix hurt Q4 profitability. Management noted improving booking trends, lower cancellations, and stable customer engagement.
BofA believes the shares warrant a discount to peers due to new margin questions and limited recovery prospects until 2027. The new target is based on 9x fiscal 2027 EBITDA estimates, up from 8x previously.
Notably, 9 analysts have recently revised earnings downwards. For deeper insights, investors can access Bond.az's Pro Research Report.
