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Investing.com - TD Cowen downgraded Medpace (NASDAQ:MEDP) from Hold to Sell on Wednesday, while simultaneously raising its price target to $366.00 from $283.00. The company, currently valued at $13.4 billion, trades at a P/E ratio of 23x and an EV/EBITDA multiple of 26.7x.
The research firm’s decision comes after Medpace shares surged approximately 55% on Tuesday, a move TD Cowen attributes primarily to short covering rather than fundamental business improvements.
Despite the downgrade, TD Cowen acknowledged improved sustainability in both bookings and revenue growth beyond the next 12 months compared to previous expectations, and noted that macroeconomic conditions have at minimum stabilized.
The firm expressed concern about Medpace’s current valuation, which it calculates at 31 times revised 2026 estimates.
TD Cowen concluded that Medpace shares are overvalued relative to the company’s expected growth trajectory, despite the improved outlook for bookings and revenue sustainability.
In other recent news, Medpace Holdings Inc . reported second-quarter 2025 earnings that exceeded expectations, with an earnings per share of $3.10, surpassing the forecasted $2.98. The company also outperformed revenue projections, reporting $603.3 million compared to the anticipated $538.81 million. These results indicate a strong quarter for Medpace, reflecting robust operational performance. Despite these positive earnings and revenue figures, UBS has maintained its Neutral rating on Medpace with a price target of $300. UBS’s decision comes amid a mixed outlook, even though Medpace’s Q2 bookings and sales exceeded expectations, prompting the company to raise its guidance. These developments highlight the varying perspectives among analysts regarding Medpace’s future performance.
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