Baird says CROs to continue to face macro economic headwinds

Syneos Health

30/08/2022 14:32

** Brokerage Baird says contract research organizations
(CROs) are likely to struggle until macro economic pressures
ease
    ** However, believes valuations are reasonable or attractive
for most cos; focus on IQVIA Holdings Inc  IQV.N  as it combines
relative safety and fundamental attractiveness - Baird
    ** In the last reported quarter, large players such as
Charles River Laboratories International Inc  CRL.N  and Syneos
Health Inc  SYNH.O  cut revenue growth forecasts, citing forex
pressures, lower COVID work, Russia-Ukraine conflict
    ** Adds that labor challenges also remain elevated, though
they are easing
    ** CRL and SYNH down ~46% and ~40%, respectively, this year,
while IQV down ~23% 

 (Reporting by Raghav Mahobe)
 ((Raghav.Mahobe@thomsonreuters.com;))