In a report released today, Charles Rhyee from TD Cowen downgraded Medpace Holdings (MEDP – Research Report) to a Hold, with a price target of $328.00.
Charles Rhyee has given his Hold rating due to a combination of factors impacting Medpace Holdings. The primary concerns stem from a challenging funding environment for biotech companies and uncertainties in regulatory conditions, which could potentially slow down trial activities and limit investments in the sector. Despite these challenges, Rhyee acknowledges Medpace’s potential for revenue growth in 2026, driven by market share gains, although he anticipates limited upside in 2025 due to macroeconomic conditions.
Rhyee also highlights Medpace’s strong position in the biotech R&D market, which constitutes a significant portion of its revenue, and its impressive free cash flow generation compared to peers. However, the ongoing decline in biotech funding, particularly in IPO and follow-on funding, poses a risk to future growth. While Medpace targets smaller biotech sponsors with relatively favorable funding trends, the overall funding landscape remains a concern. Additionally, uncertainties related to FDA staff turnover and NIH budget cuts could further impact trial activities in the near term.
In another report released on April 10, Truist Financial also maintained a Hold rating on the stock with a $333.00 price target.