UPDATE: Credit Suisse Starts INC Research Holdings (INCR) at Outperform

Credit Suisse initiated coverage on INC Research Holdings (NASDAQ: INCR) with an Outperform rating and a price target of $29.00.

Analyst Jeff Bailin said, "INCR is a global clinical contract research organization (CRO) that provides outsourced services to support all stages of the clinical development process for biopharmaceutical manufacturers. We remain positively disposed to the fundamental backdrop for the clinical CROs and believe that INCR is well positioned to take advantage of the favorable environment. Shares have performed well following the company’s November 2014 IPO; however, we remain comfortable that the company can sustain its momentum, with it driving above-average earnings growth. Our $29 target price is based on the assumption that the shares can trade at 20x our F16 EPS estimate.

"Investment Positives: We highlight the following investment positives: (1) favorable landscape for clinical CROs; (2) differentiated therapeutic area-focused structure; (3) strong reputation with investigator sites; (4) premium margins with runway for further expansion; and (5) market share opportunities," he added.

For an analyst ratings summary and ratings history on INC Research Holdings click here. For more ratings news on INC Research Holdings click here.

Shares of INC Research Holdings closed at $24.00 yesterday.

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