Medpace shares target cut by TD Cowen, retains buy rating By Investing.com

On Wednesday, TD Cowen adjusted its price target on shares of Medpace (NASDAQ: MEDP), a clinical contract research organization, to $434 from the previous target of $452. Despite this reduction, the firm maintained its Buy rating on the company’s stock.

The revision follows a period of elevated cancellations in the second quarter, which the analyst believes are specific to the period and manageable rather than indicative of a deeper, systemic problem. The report anticipates a low single-digit revenue impact in the years 2025 and 2026 due to these cancellations.

TD Cowen’s analysis suggests that while a revenue reacceleration for Medpace might be deferred to 2026, the company is still on track to achieve mid-teens revenue growth in 2025. This forecasted growth rate is expected to surpass the average within the industry.

The firm’s outlook remains positive on Medpace’s future performance, attributing the second quarter’s elevated cancellations to particular circumstances that do not reflect on the company’s long-term growth potential.

Investors are given a revised perspective on Medpace’s financial trajectory, with the firm’s assertions reinforcing confidence in the company’s ability to manage short-term disruptions and maintain robust growth in the coming years.

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