Medpace initiated with a Market Perform at Leerink

Leerink analyst Michael Cherny initiated coverage of Medpace (MEDP) with a Market Perform rating and $330 price target The firm notes Medpace is a leading contract research organization that focuses on small and mid-size biopharma and biotech customers. Medpace’s growth trajectory, however, has been impacted throughout FY24 due to industry-wide elevated cancellation rates and a broad slowdown in new clinical trial starts after biotech funding receded from COVID highs. Although Leerink remains positive on the long-term health of the CRO space, the change in customer dynamics tied to the choppier funding environment adds a greater element of uncertainty to Medpace’s near-term results, particularly given its representative customer exposure.