Sometimes, the word of an analyst will do amazing things for a stock. Just ask healthcare stock Medpace Holdings (NASDAQ:MEDP), which shot up over 18% in Tuesday morning’s trading after new word from Robert W. Baird noted that it has had an excellent run of things lately.
Baird analysts, led by Eric Coldwell, took one look at the latest numbers coming out of Medpace and reacted with great approval. After all, Medpace’s latest numbers represented a beat in its key financial metrics for the seventh quarter in a row.
A lot of the success for Medpace, Coldwell noted, came from Medpace’s ability to be selective in its clientele and, thus, manage to stick to a tighter focus. Most contract research companies simply can’t do that, Coldwell noted, and that makes Medpace a standout.
Then there’s the matter of Medpace’s latest numbers. We all knew it was a win, but the win itself is sufficiently impressive that it must be called out. Third quarter 2023 revenue was up 28.3% and reached a grand total of $492.5 million.
Net income went from $66 million in 2022’s third quarter to $70.6 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) was up 1%. Just to put a cherry on top of this magnificent sundae, Medpace is currently debt-free, as it paid off all its debt in the third quarter.
Is Medpace a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MEDP stock based on one Buy and one Hold assigned in the past three months, as indicated by the graphic below. Furthermore, the average MEDP price target of $279.50 per share implies 3.51% upside potential.
