- I last covered PRA in May 2019 - the stock is up 14% since then, which was at the top end of my forecast at the time.
- Market selloffs aside, PRA's share price has hovered between $100-$110 mark for nearly 2 years - tough operating conditions due to the pandemic may be holding it back.
- PRA has dealt reasonably well with the crisis and are forecasting ~$3.1bn of revenues in FY20 as the midpoint of expectations - a slight increase on FY19.
- Momentum from 2 good quarters could see the share price break out above $115 and get close to my calculated fair value price of $127.
- Management and the company pass most of the investment tests but need to go above and beyond, in my view to make the company a "strong buy". I am mildly bullish.
For further details see:
PRA Health Sciences: A Solid Investment Case But Watch Out For Signs Of Inertia