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Truist cuts IQVIA shares target, holds buy rating on growth prospects

EditorNatashya Angelica
Published 12/12/2024, 11:54 PM
IQV
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On Thursday, Truist Securities updated its outlook on shares of IQVIA Holdings (NYSE: NYSE:IQV), adjusting the company's price target to $261 from the previous $265, while reiterating a Buy rating.

The adjustment followed IQVIA's Investor Day event held in Durham, NC, where the company discussed the durability of the pharmaceutical and drug development sectors and its own growth prospects. According to InvestingPro data, IQVIA, with its $36.57 billion market cap, currently trades below its Fair Value, suggesting potential upside opportunity.

The event showcased IQVIA's considerable size, comprehensive capabilities, advanced use of AI, and its strategic position within the Contract Research Organization (CRO) industry over the past eight years, with a forward-looking perspective.

With trailing twelve-month revenue of $15.31 billion and an impressive Financial Health score of "GREAT" on InvestingPro, IQVIA has demonstrated its market leadership. The company presented its updated mid-term growth targets, which aligned with expectations from Truist Securities and the wider investment community.

Attendees at the Investor Day had the opportunity to engage with IQVIA's operations more closely through a tour of IQVIA Laboratories and demonstrations of some of the company's products. These experiences provided valuable insights into the company's operational strengths and product offerings.

The analyst from Truist Securities highlighted the key points from the Investor Day, noting the alignment of IQVIA's refreshed growth targets with the expectations previously held. This reaffirmation of the company's prospects contributed to the decision to maintain the Buy rating on IQVIA's shares.

In other recent news, IQVIA Holdings reported a year-over-year growth in Q3 revenue of 4.3%, reaching $3.896 billion, and a 14% increase in adjusted diluted EPS to $2.84. Despite a significant cancellation, the company's backlog expanded by 8% year-over-year to reach a record $31.1 billion. IQVIA also plans an aggressive share repurchase in Q4 2023.

Multiple analyst firms have adjusted their outlooks on IQVIA. Jefferies maintained a Hold rating, while Baird, TD Cowen, and Deutsche Bank (ETR:DBKGn) kept their Buy ratings, albeit with revised price targets.

The firms highlighted IQVIA's long-term growth plan, margin expansion, and strategic priorities, including enhancing its artificial intelligence offerings and utilizing capital for share repurchases and mergers and acquisitions. These are some of the recent developments surrounding IQVIA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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