Icon (ICLR) has reestablished a "credible" path to mid-single-digit organic growth in 2027 after two consecutive quarters of strong bookings, win rates at higher levels, and a "notably strong" Q2 pipeline, RBC Capital Markets said in a note Thursday.

The company reported a 1.42x book-to-bill ratio for fiscal Q1, beating both consensus and RBC estimates, according to the note.

The direct fee component exceeded 1.3x, driven by full-service awards from pharmaceutical and biotech clients, with the benefit from the full-service wins seen to be more relevant in 2027, the brokerage said.

Icon's pipeline quality is also improving, skewing toward higher-quality phase 3 awards, while management commentary that fiscal Q2 will be "notably strong" boosts confidence in a durable turnaround, the brokerage said.

RBC Capital Markets upgraded the stock to outperform from sector perform, and raised the price target to $185 from $126.

Shares of Icon were up more than 3% in Thursday trading.

Price: 163.53, Change: +5.36, Percent Change: +3.39