BMO Capital has lowered its price target for ICON plc (NASDAQ: ICLR) to $100.00 from $175.00 and retained a Market Perform rating, citing uncertainty tied to an accounting review. The firm noted the adjustment alongside a pullback in its earnings estimates for the company.
The stock has seen notable near-term weakness, sliding 8.43% over the past week. The most recent quoted price of $73.01 represents a sharp decline from a prior close of $144.55, according to market data.
The investigation centers on revenue recognition for fiscal years 2023 and 2024. Early indications from the review suggest that revenue in those periods could have been overstated by less than 2% in each year, per BMO Capital’s assessment. Separately, ICON has opened an internal probe that expands the span under review to include fiscal 2025 as well.
Operational timing has been affected. The company pushed back the release of its fourth-quarter 2025 results to as late as April 30, roughly two months beyond the initial schedule. ICON also withdrew its previously issued fiscal year 2025 guidance while the investigation continues.
BMO Capital emphasized that, to date, the investigation has not identified any financial impact on ICON’s pharmaceutical clients, nor has it detected operational disruptions to those clients arising from the accounting practices under scrutiny.
The cut in BMO’s price target reflects three explicit factors: the uncertainty tied to the accounting review, broader concerns about potential AI-driven disintermediation within the contract research organization - CRO - sector, and BMO’s own lower earnings forecasts for ICON.
Broker responses have varied. Bank of America Securities downgraded ICON from Neutral to Underperform and reduced its price target from $195 to $75, citing worries about possible revenue overstatements. Evercore suspended its coverage pending further clarity. Jefferies and Truist Securities have kept Hold ratings in place, with price targets of $175 and $222, respectively.
The unfolding situation has prompted a temporary recalibration among analysts as they await the outcome of ICON’s internal review and the company’s delayed financial reporting. For investors and market participants, the immediate focus remains on the magnitude of any revenue adjustments and the timeline for official financial disclosures.
Summary
BMO lowered ICON’s price target to $100 while maintaining a Market Perform rating amid an accounting investigation focused on revenue recognition for 2023-2025. ICON delayed Q4 2025 results and withdrew 2025 guidance; preliminary indications point to potential overstatements of less than 2% for 2023 and 2024. Broker reactions range from downgrades and suspended coverage to unchanged Hold ratings.
Key points
- BMO cut ICON’s price target from $175 to $100 and kept a Market Perform rating, reflecting investigation-related uncertainty and reduced earnings estimates.
- ICON delayed fourth-quarter 2025 results to as late as April 30 and withdrew fiscal 2025 guidance while conducting an internal accounting review covering 2023-2025.
- Analyst responses include a downgrade with a steep price-target reduction from one major broker, a suspension of coverage from another, and Hold-rated price targets from two firms at $175 and $222.
Risks and uncertainties
- Ongoing accounting investigation - potential revisions to reported revenue for fiscal 2023-2025 could materially change near-term financial metrics and analyst models; impacts are concentrated in the healthcare and CRO sectors.
- Delayed reporting and withdrawn guidance - the absence of current fiscal 2025 guidance and the postponed Q4 2025 release increase forecasting difficulty for investors and analysts across equity markets.
- Analyst and market reaction - divergent broker actions create uncertainty in share-price discovery and may amplify volatility in the stock and related CRO peers.