Deutsche Bank Reiterates a 'Buy' on ICON plc (ICLR), Raises Price Target & Estimates

June 10, 2009 9:08 AM EDT

Deutsche Bank reiterates a 'Buy' on ICON plc (Nasdaq: ICLR), raises price target to from $23 to $25.50."

Deutsche analyst says, "Following our recent initiation of ICLR, we have re-visited our view on the CRO industry and ICLR in particular: 1) Industry-wide stabilization taking hold, with solid RFP flows for ICLR a positive data point. 2) ICLR's exposure to ongoing Pharma M&A limited (~7% of bookings), with potential LT opportunity. 3) Operating leverage will boost EPS growth, with potential for 14% OM by end of FY10 (FY08 OM of 11.5%). On account of ICLR's solid market position and strong business momentum, we reiterate our Buy rating and raise our PT to $25.50."

"Our recent channel checks have given us increased confidence that the CRO industry is stabilizing. In line with this, we think that RFP flows have increased month-by-month since January for ICLR, and hit rates (wins) remain stable. Also, cancellation rates have normalized, allaying a significant investor concern...we have increased our FY09 EPS from $1.45 to $1.50 and our FY10 EPS from $1.70 to $1.75.

To see more analyst ratings on ICLR Click Here.

ICON plc (ICON) is a contract research organization (CRO), providing outsourced development services on a global basis to the pharmaceutical, biotechnology, and medical device industries.

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