Jefferies Bullish on ICON (ICLR) Despite Share Price Decline

ICON Public Limited Company (NASDAQ:ICLR) is one of the most undervalued AI stocks to buy now.

With significant analyst and hedge fund sentiment, alongside a low forward price-to-earnings (PE) ratio, ICON Public Limited Company (NASDAQ:ICLR) secures a spot on our list of the most undervalued AI stocks to buy now.

Amid an internal accounting investigation, the stock has slid nearly 50% and 45% on a one-year and year-to-date basis, respectively. Analysts at Jefferies revisited the stock on February 23, 2026, and noted that the stock had fallen enough, making its current valuation attractive. Although the firm reduced the target on the stock from $175 to $135, it remains positive on the company’s outlook despite the concerns surrounding AI’s impact on the R&D industry. While acknowledging the potential pressure that AI will put on labor-intensive companies, such as ICON Public Limited Company (NASDAQ:ICLR), the firm says AI will not disrupt the industry to the extent the market is predicting. Jefferies upgraded the stock from ‘Hold’ to ‘Buy’.

Meanwhile, while discussing the share price decline tied to the company’s investigation into accounting practices, analysts at TD Cowen calmed investors down by noting that the investigation’s impact on the company’s revenue is exaggerated. Cutting 2026 and beyond revenue estimates by just 2%, the firm projects a 14% impact on ICON Public Limited Company (NASDAQ:ICLR)’s adjusted earnings per share in 2026 and 2027.

ICON Public Limited Company (NASDAQ:ICLR) is a clinical research company that provides outsourced development services to the pharmaceutical, biotechnology, and medical device industries.

While we acknowledge the potential of ICLR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.