Icon (ICLR) is poised to benefit from increasing clinical trial activity with its strong relationships with large pharmaceutical firms and exposure to growing areas such as oncology and cardiometabolic therapies, RBC Capital Markets said in a Monday note that resumed coverage of the company.

RBC's research suggests that biopharmaceutical financing stabilization and accelerating mergers and acquisitions, among other factors, point to strong momentum in the use of contract research organizations such as Icon.

With more than 40% of its revenue from top 10 customers, Icon's exposure to large pharmaceutical firms should protect it from a wave of project cancellations affecting competitors, RBC analysts said.

The company should be positioned to benefit as its key partners are facing loss-of-exclusivity risks while having substantial capital to invest in acquiring new assets and building new pipelines, the analysts said.

Icon's accounting review has been completed with a favorable conclusion, but the analysts said they need additional disclosures on key performance indicators, as well as restated financials and reissued guidance, before they consider taking a more constructive view on the company.

RBC resumed coverage of the company with a Sector Perform rating and a price target of $123.

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