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With a market cap of $45.83 billion, IQVIA Holdings Inc. (IQV) is a leading global provider of advanced analytics, technology solutions, and contract research services to the life sciences industry. Headquartered in Durham, North Carolina, the company leverages data science, machine learning, and other innovative technologies to help healthcare companies accelerate clinical development, improve commercial effectiveness, and drive better patient outcomes.
IQV has underperformed the broader market over the last year. The stock has gained 11.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 25.6%. In 2024, the stock has gained 8.7%, compared to SPX's 18.4% gains on a YTD basis.
Narrowing the focus, IQV also underperformed the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained 15.3% on a YTD basis.
On Jul. 22, IQV reported its Q2 results. Its adjusted EPS of $2.64 beat the consensus estimates of $2.58. Revenue stood at $3.81 billion, surpassing the Wall Street estimates of $3.79 billion. The company expects full-year adjusted EPS between $11.10 and $11.30 and revenue between $15.43 billion and $15.53 billion. The stock closed down more than 9% on the day the results were released.
For the current fiscal year, ending in December, analysts expect IQV’s EPS to grow 10.3% to $10.24 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 20 analysts covering IQV stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
The configuration is more bullish than three months ago, with 14 analysts suggesting a “Strong Buy.”
On Jul. 24, Shlomo Rosenbaum from Stifel Nicolaus maintained a “Buy” rating on IQVIA Holdings, with a price target of $312—Street high, which indicates a 24% upside from the current levels. The mean price target of $273.16 represents an 8.6% premium to IQV’s current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
