- The shares of contract research organization Syneos Health, Inc. ( NASDAQ: SYNH ) dropped ~13% in the morning hours Tuesday after the company projected its Book-to-Bill ratio in the Clinical Solutions business could reach 1.05x – 1.15x for the 12-months ending Sep. 30.
- The outlook provided ahead of the company's presentation at Tuesday's 2022 Baird Global Healthcare Conference excluded reimbursable expenses.
- Commenting on the update, Baird analyst Eric Coldwell who has an Outperform rating and an $89 per share target on SYNH, noted that the forecast indicated "further sequential declines in 3Q clinical net awards and NBB [net book-to-bill]."
- "Challenges appear to be large-client timing and SMID client hesitancy given the macroeconomic environment," Coldwell added.
- The analyst stopped short of updating his model for SYNH but added he is "leaning toward another round of 2023 reductions," subject to the company's presentation at the event.
- For 12 months ending Jun. 30, SYNH reported a ~1.29x of Book-to-Bill ratio for the Clinical Solutions business, excluding reimbursable expenses.
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Syneos Health falls 13% after update on outlook