Shares of IQVIA Holdings (NYSE: IQV) traded lower Wednesday after Barclays revised its price target for the healthcare analytics and research firm, cutting it from $170 to $165 while maintaining an Equal Weight rating.
The adjustment reflects ongoing concerns over demand trends and industry headwinds that have weighed on the company and its sector peers.
Barclays analyst Luke Sergott cited persistent uncertainties in the pharmaceutical services industry, particularly regarding the impact of potential tariffs and a cautious outlook for the company’s Technology & Analytics Solutions (TAS) business.
While IQVIA has demonstrated resilience in its Real-World Solutions (RWS) segment, the broader market environment remains challenging, prompting a more conservative stance on the stock’s near-term performance.
Despite these challenges, IQVIA continues to show operational strength. The company recently reported fourth-quarter 2024 results that slightly exceeded expectations, with adjusted diluted earnings per share of $3.12 and revenue of $3.96 billion.
Full-year 2024 revenue rose 2.8% year-over-year to $15.405 billion, and IQVIA has taken steps to enhance its financial flexibility by refinancing debt and lowering interest rates on its credit facilities.
The revised price target from Barclays aligns with a trend among analysts to temper expectations for IQVIA in the face of industry overhangs. Other firms, including HSBC, have also lowered their targets and ratings, citing similar concerns about near-term growth and external pressures.
However, some analysts remain optimistic about IQVIA’s long-term prospects, highlighting the company’s solid profitability, positive free cash flow, and diversified business mix.
As of the latest trading session, IQVIA shares were priced at $151.69, reflecting a cautious but stable outlook as the company navigates a complex and evolving healthcare landscape.
Investors will be watching closely for updates on demand trends and the company’s continued efforts to drive growth and operational efficiency in the months ahead.