Medpace downgraded to Market Perform at William Blair amid uncertainty

As previously reported, William Blair analyst Max Smock downgraded Medpace (MEDP) to Market Perform from Outperform. While admitting to being “late,” the firm contends it is time to downgrade the shares as “there is simply too much working against Medpace here for the stock to be interesting any time soon.” While the firm does not expect the company to be impacted to the same extent as other Contract Research Organizations by potential pharmaceutical-specific tariffs and drug price reform, it believes the uncertainty is “adding to a large pile of unsettling news” that will continue to create a more challenging funding environment and ultimately depress demand from smaller innovators. While the firm still calls Medpace “one of the highest-quality companies in the pharma outsourcing and services space,” it is downgrading shares until there is more clarity on the path forward.