Truist downgrades ICF International stock amid political and regulatory shifts By Investing.com

On Monday, Truist Securities revised its stance on ICF International (NASDAQ:ICFI) stock, shifting from a Buy to a Hold rating and adjusting the price target to $155 from the previous $168.

The decision comes as the political landscape changes with the upcoming Presidential Election leaning towards Former President Trump and recent Supreme Court rulings that impact regulatory frameworks.

The analyst from Truist Securities expressed concerns about the future organic growth of ICF International, citing a potential decrease in confidence for achieving high-single-digit growth in the next two to three years.

These apprehensions are attributed to the increasing likelihood of Former President Trump’s return to the presidency and a series of Supreme Court of the United States (SCOTUS) decisions.

The most notable ruling, which took place last Friday, effectively ended the Chevron (NYSE:) doctrine, thus reducing the Environmental Protection Agency’s (EPA) authority and introducing uncertainty regarding regulatory direction and civil agency program management.

The new price target of $155 is based on an enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple of 13.8 times. This is slightly lower than the 5-year average multiple of 14 times and the current group multiple of 14.8 times. The adjustment reflects the analyst’s recalibrated expectations for ICF International’s financial performance amidst the evolving political and regulatory environment.

The downgrade indicates a shift in the investment firm’s outlook on the company, suggesting that investors may want to maintain their current positions without increasing their stake at this time. Truist Securities’ revised price target and rating are now aligned with the firm’s updated projections for ICF International’s growth and market conditions.

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