Parexel International is a leading contract research organization and boasts some of the world's largest drug, biotech and medical device companies among its clients.
Analysts like PRXL's operational breadth: its clinical research services unit offers clinical trial and data management, study design and recruitment, biostatistical analysis, clinical pharmacology, industry training, and publishing services.
The company's consulting/medical communications services unit offers services for the non-clinical aspects of drug development, including regulatory affairs. Also, PRXL's perceptive informatics unit offers information technology systems/services that help clients manage clinical trials.
Further, costs are reasonable, given PRXL's biotech status, and analysts are also impressed by the company's client recruitment efforts. The Reuters F2008/F2009 EPS consensus estimates for PRXL are $1.67/$2.13.
The risks? PRXL remains a high-risk stock due to the inherently volatile biotech sector. Analysts are also keeping an eye on the entrance of new players to the biotech services segment.
The First Call mean rating for PRXL is: Hold. [11 firms.] Mean 2008 target: $52.00. [high: $62, low: $42.]
Stock Analysis: Parexel International is a high-risk stock not suitable for moderate-risk or low-risk investors. Investors with an investment horizon longer than 3 years should be rewarded from PRXL's shares. Sell / Stop Loss if you were to purchase shares in this company: $28.
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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