Medpace Holdings (NASDAQ:MEDP) shares surged more than 6% on Wednesday, bringing its gains this week to nearly 20%. This marks its most significant two-day performance since late 2022.
The rally comes after analysts raised their price targets (PT) on MEDP in the wake of its latest earnings report, where the company’s management highlighted an improving funding landscape for its drug-developer clients.
Citing “positive commentary relating to macro and labor dynamics,” analysts at Guggenheim raised the target price on the stock from $302 to $453, marking a new Street high.
Similarly, at Baird, the PT was lifted from $312 to $408, while at Jefferies, it was hiked from $281 to $340.
“In short, biotech funding is on the mend, employee turnover is down, and MEDP continues to take share,” analysts said in a note.
“The setup for '24 is favorable: minimal exposure to large pharma (~4% of '23 rev) insulates MEDP from the drama around budget cuts and the shift to FSP. What's not to like? Valuation, though we have missed this boat multiple times.”