Icon Earnings: Strong Performance Amid Macroeconomic Challenges; Raising Fair Value Estimate by 10%

Icon ended 2023 in a healthy position with revenue of $8.12 billion, a nearly 5% increase from the previous year, and adjusted EBITDA growth exceeding 14%. We continue to have a positive outlook for the firm and have raised our fair value estimate to $268 per share from $243 based on Icon’s strong results despite challenging macroeconomic conditions. We reaffirm our narrow economic moat rating as well as our Medium Morningstar Uncertainty Rating. Despite our positive outlook, we view the stock as currently overvalued. Investors have pushed the stock up 40% since Icon reported third-quarter results in October, due to stronger-than-expected performance amid macroeconomic pressures.