TD downgrades Medpace to Sell after 55% rally

TD Cowen downgraded Medpace (MEDP) to Sell from Hold with a price target of $366, up from $283. The post-earnings 55% share rally yesterday was due to short covering and not a change in the company’s fundamentals, the analyst tells investors in a research note. The firm says that the shares, trading at 31-times its higher 2026 earnings estimates, are overvalued relative to Medpace’s expected growth. Nonetheless, TD admits the company’s’ mix shift towards faster burning therapeutic categories, like metabolic, could be more sustainable than previously thought.