On Wednesday, TD Cowen maintained a Buy rating on IQVIA Holdings (NYSE: NYSE:IQV) shares but reduced the price target from $255.00 to $250.00. The analyst provided a cautiously optimistic view on the company's long-term earnings potential, noting potential challenges in the near term but expressing confidence in IQVIA's capabilities to navigate the market.
IQVIA, known for its extensive services in drug development, technology solutions, and laboratory services, has been recognized for its ability to withstand various market pressures.
The analyst highlighted that the company is expected to see relief from several recent challenges over the next year. This includes a recovery in Therapeutic Area Strategy (TAS), a peak in the shift to Functional Service Provider (FSP) models, and the completion of strategic pricing discussions with partners.
Despite near-term headwinds anticipated in 2025, with implied earnings per share (EPS) ranging between $11.66 and $12.21 versus a consensus of $12.05, the company's long-term EPS growth rates are projected to be in the high single digits to low double digits. This forecast is viewed as potentially conservative by the analyst.
IQVIA's management has indicated that a large portion of the pharmaceutical industry's cost-cutting measures should be completed by the first half of 2025. This is expected to ease some of the pressures the company has been facing.
The analyst emphasized that IQVIA's strong track record in executing its business strategy positions it favorably for when the demand environment improves. However, the firm underscored that execution in 2025 will be crucial for maintaining confidence in the company's long-term outlook.
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