Goldman Reiterated Conviction List Buy On PAREXEL International (PRXL)

In a research report Goldman Sachs reiterates its Conviction List Buy on shares of PAREXEL International Corporation PRXL and has a $33 price target as it believes the sell off in shares are overdone. In the research report Goldman writes, "During the 2Q CRO earnings season, our expectation for solid new business wins for the clinical late-stage providers was confirmed, as we saw solid bookings across the late-stage clinical service providers. Despite this, the sector traded off 16% (S&P down 2%) over the course of 2Q earnings. While there were certainly some company-specific issues related to the weakness in the stocks, the group was dragged down by (1) reduced outlook and visibility into a recovery in demand for preclinical services and (2) heightened concerns around the rate at which clinical CROs are able to convert backlog into revenue. While concerns around preclinical fundamentals seem justified to us, we believe backlog conversion fears have been overblown. As a result, we reiterate our CL-Buy on PRXL and our Buy on PPDI (neither tempered outlook) and would take advantage of the recent pull-back to build on positions." Shares of PAREXEL International closed at $20.41 yesterday.