TD Cowen analyst Charles Rhyee has maintained their bearish stance on MEDP stock, giving a Sell rating today.
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Charles Rhyee has given his Sell rating due to a combination of factors that suggest Medpace Holdings’ stock is overvalued. Despite positive indicators such as a 30% year-over-year increase in pre-backlog value and a favorable preliminary 2026 outlook, Rhyee believes that the company’s current valuation is not justified by its expected growth. The stock is trading at approximately 28 times the projected 2026 adjusted EBITDA, which is considered high given the anticipated low double-digit percentage revenue growth and high single-digit percentage EBITDA growth.
Rhyee notes that while Medpace is well-positioned among public CROs, with strengths in biotech and limited exposure to aggressive pricing or unfavorable financial structures, the current valuation levels are reminiscent of the peak biotech investment period in late 2021. During that time, Medpace was experiencing more robust growth. The analyst suggests that even with the potential upside from pre-backlog growth, the shares are still overvalued relative to the company’s fundamental performance expectations.
In another report released today, Barclays also maintained a Sell rating on the stock with a $425.00 price target.