Parexel should see more revenue, higher share prices, analysts say
Recent successes for Parexel ($PRXL) have caught the attention of financial experts who predict that the Waltham, MA, contract research organization will see an increase in revenue and share price.
As The Associated Press reports, Alexander Draper, an analyst with Raymond James Financial, predicts that the price of Parexel stock will soon reach $30 per share, just over $2 more than its current price of $27.60. Off of Wall Street, Parexel should also see higher profit margins, fewer contract cancelations and, best of all, an increase in company revenue this year.
It seems that Parexel has yet to slow down since May 2011, when it was announced that it was one of two CROs selected by Pfizer ($PFE) to supply the pharma giant with clinical development services over 5 years. That Big Pharma pact has been a bellwether deal for the CRO industry, signaling closer ties between the world's biggest drug developers and outsourcers. And analysts have paid keen attention to how CROs like Parexel are handling the upfront costs of these big partnerships.
For Parexel, so far, the reviews have been solidly in its favor.