On Friday, Jefferies made adjustments to the financial outlook for ICON plc (NASDAQ:ICLR), a global provider of outsourced development services to the pharmaceutical, biotechnology, and medical device industries.
The firm's analysts revised the price target downward to $275 from the previous target of $290, while continuing to recommend the stock as a Buy.
The adjustment comes as a result of recent updates from ICON, insights from channel checks, and announcements from customers. These factors led Jefferies to lower both earnings per share (EPS) estimates and the price target ahead of the management's expected guidance announcement next week.
Analysts noted that the margin pressure in 2025 is anticipated to stem from an increased contribution of vaccine studies, which typically involve higher pass-through costs, especially in the first half of the year.
Despite the downward revision, Jefferies highlighted several positive factors for ICON. The company's advancement in strategic partnerships and less severe cost reductions from one of its key customers, Pfizer (NYSE:PFE), were seen as beneficial not only for 2025 but also extending into 2026.
According to the analyst, the forthcoming guidance from ICON's management could serve as a clarifying event for investors and the market.
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