KeyBanc Reiterates a Buy Rating on PRA Health Sciences

By Jason Carr

In a report released yesterday, Donald Hooker from KeyBanc reiterated a Buy rating on PRA Health Sciences (NASDAQ: PRAH). The company’s shares closed yesterday at $52.96.

Hooker observed:

“We reiterate our Overweight rating and are raising our price target on PRA Health Sciences (PRAH) after a strong 3Q16 for top-line momentum with a net book-to-bill ratio of 1.30x and constant currency revenue growth of ~16%. Also, PRAH is in the early stages of ramping its enterprise relationship with Takeda Pharmaceutical Company, which is an entirely new client for PRAH. With strong bookings momentum and the Takeda relationship ramping, we are raising our 2017 revenue growth outlook from ~12% to ~15% (vs.”

According to, Hooker is a 4-star analyst with an average return of 3.9% and a 55.1% success rate. Hooker covers the Technology sector, focusing on stocks such as Medidata Solutions, Quality Systems, and Athenahealth.

Currently, the analyst consensus on PRA Health Sciences is Moderate Buy and the average price target is $58.50, representing a 10.5% upside.

In a report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $63 price target.

Based on PRA Health Sciences’ latest earnings report from June 30, the company posted quarterly revenue of $455.8M and quarterly net profit of $38.67M. In comparison, last year the company earned revenue of $403.5M and had a net profit of $23.66M.

Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock.

PRA Health Sciences, Inc. is a contract research organization, which engages in the provision of outsourced clinical development services to the biotechnology and pharmaceutical industries. It includes data management, statistical analysis, clinical trial management, and regulatory and drug development consulting. The company was founded in 1976 and is headquartered in Raleigh, NC.