ICON plc (ICLR) Rating Suspended at Evercore

ICON plc (NASDAQ: ICLR) Rating Suspended at Evercore

The analyst comments "We are suspending our rating on ICLR this morning given the disclosure of an internal investigation into the company’s accounting practices and controls. As noted in the 6-K, the investigation primarily focuses on potential revenue recognition issues in 2023-2025. Preliminary indications point to the impact in 2023-4 as having overstated revenue by less than 2% in each fiscal year. ICLR has also withdrawn 2025 EPS guidance, and announced it intends to report year-end financials on or before April 30, 2026. In addition, there has been no impact to customers. We have spoken to the company, which is limited in what it can say at this point, including on the potential EPS impact. On simple math for 2023, the impact of every 1% lower revenue could be between $0.00-0.80, for 2024, and $0.15-1.00. Given that wide range, Evercore lSI is suspending the rating and target price for this stock because there is not sufficient fundamental basis for determining, or there are legal, regulatory or policy constraints around publishing, a rating or target price. The previous rating and target price, if any, are no longer in effect for this company and should not be relied upon. We aim to restore our ratings and price target once revised financials are released. In addition, the company commented that backlog and bookings are not subject to the investigation, and that addressing it remains one of management's strategic priorities."

You May Also Be Interested In