Medpace initiated with a Buy at Redburn Atlantic

Redburn Atlantic initiated coverage of Medpace with a Buy rating and $404 price target Detailed analysis of expected biopharma R&D spend suggests growth rates normalizing post-pandemic, and a shift in outsourcing practices from full-service outsourcing, or FSO, to functional service provider, or FSP, may result in Contract Research Organizations, or CROs, seeing lower revenue/contracts than historically, says the analyst. However, small biotech-focused Medpace should benefit from improved biotech sector funding and the U.S. rate cutting cycle, the analyst contends.