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Headquartered in Durham, North Carolina, IQVIA Holdings Inc. (IQV) is a global leader in advanced analytics, technology solutions, and contract research services for the life sciences industry. With a market cap of $36.6 billion, IQVIA leverages a vast network of data and expertise to support pharmaceutical companies, biotechnology firms, and healthcare organizations in improving patient outcomes and accelerating innovation.
Shares of IQVIA Holdings have underperformed the broader market over the last year. The stock has declined 3.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31%. In 2024, the stock is down 12.8%, compared to SPX's 25.2% gains on a YTD basis.
Narrowing the focus, IQV also lagged behind the Health Care Select Sector SPDR Fund (XLV). The exchange-traded fund has gained 10.5% over the past year and 5.7% on a YTD basis.
IQVIA Holdings has faced recent market underperformance, driven by challenges in navigating rapidly evolving healthcare trends and intensifying competition in the data analytics space. Following its Q3 earnings release on Oct. 31, the stock declined 4.7% despite reporting strong results, with revenue of $3.90 billion, exceeding the consensus estimate of $3.85 billion, representing a 4.3% year-over-year increase. Adjusted EPS grew 14.1% year-over-year to $2.84, beating the consensus estimate of $2.81.
However, the company revised its full-year 2024 guidance downward, citing client-related delays in two major trials. Updated projections now estimate revenue between $15.35 billion and $15.40 billion, adjusted EBITDA in the range of $3.67 billion to $3.7 billion, and adjusted EPS between $11.10 and $11.20.
For the current fiscal year, ending in December, analysts expect IQVIA Holdings’ EPS to grow 9.6% to $10.17 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 21 analysts covering IQV stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”
The configuration is more bullish than three months ago, with 15 analysts suggesting a “Strong Buy.”
On Nov. 6, Argus lowered IQVIA's price target to $260 from $280 but maintained a “Buy” rating, citing strong order growth, a robust backlog, and technological innovation driving expected continued growth.
The mean price target of $253.67 represents a 25.7% premium to IQV’s current price levels. The Street-high price target of $290 suggests an ambitious upside potential of 43.7%.
