UPDATE: UBS Upgrades ICON plc (ICLR) to Buy

UBS analyst Dan Brennan upgraded ICON plc (NASDAQ: ICLR) from Neutral to Buy with a price target of $232.00 (from $207.00).

The analyst comments "CLR's $12B deal to acquire clinical peer PRAH looks to have many attractive features, most notably taking advantage of ICLR's strong balance sheet, low tax rate and receptive financing markets to create meaningful financial accretion. Though the market may be skeptical of the strategic benefits of large CRO M&A, we believe the deal creates a stronger company across numerous fronts and expect ICLR's management team, who has been interested in larger M&A for some time, is well prepared to execute the deal. With greater scale, enhanced capabilities & a more attractive growth profile (~30% EPS accretion by 2024; ~21% 4 year EPS CAGR), we upgrade to Buy noting too that the recent decline in the shares (-13% since the deal announcement) provides an attractive opportunity."

For an analyst ratings summary and ratings history on ICON plc click here. For more ratings news on ICON plc click here.

Shares of ICON plc closed at $180.68 yesterday.

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