ICLR - ICON: Will The Huge Acquisition Of PRA Continue To Create Synergies?

2024-01-31 23:07:19 ET

Summary

• ICON Public is a global clinical research organization that provides services for the pharmaceutical, biotechnology, and medical device industries.
• The clinical research organization sector is expected to have strong growth due to increased drug research and development, providing opportunities for ICON's growth.
• The company has been 'digesting' a huge 2021 merger that loaded it with debt and diluted outstanding shares.
• I think the valuation is not the most attractive, even considering possible margin expansion and high single digit growth.

Investment Thesis

ICON ( ICLR ) is a UK company operating in the lucrative medicines research and development sector. This sector is not only very profitable, but it is also essential for society, and therefore, it is expected to continue growing in the coming years....

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