Company Reports

Narrow-moat Medpace delivered a strong first-quarter performance, highlighted by revenue of $511 million, a year-over-year increase of nearly 18%. We have raised our fair value estimate to $296 per share from $261 based on continued robust demand for Medpace’s clinical trial services. While we have a very positive outlook and strong growth projections for Medpace, we currently view the shares as overvalued, trading at a 37% premium to our fair value estimate. Investors reacted positively to Medpace’s strong results, and year to date, the shares have risen 33% thanks to the firm’s solid performance despite potential concerns related to the biotech funding environment and macroeconomic challenges affecting its small to midsize biopharma customers.

Medpace is a global late-stage contract research organization, or CRO, that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. The company was founded over 30 years ago in Cincinnati. It is principally based in the US but also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported healthy year-end results highlighted by revenue of $1.88 billion, representing a 29% increase from the prior year. Demand for Medpace’s clinical trial services has been robust, as the funding environment is improving and several stalled projects are now moving forward. We have updated our forecast to reflect Medpace’s continued strong performance, and we have raised our fair value estimate about 9% to $261 per share from $239. We continue to have a positive long-term outlook for Medpace, and we forecast to high-single-digit to low-double-digit revenue growth over our 10-year forecast period.

Medpace is a global, late-stage contract research organization, or CRO, that provides full-service drug development and clinical trial services to small and midsized biotechnology, pharmaceutical, and medical device firms. The company was founded over 30 years ago in Cincinnati, Ohio. Its operations are principally based in the U.S., but it also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported robust third-quarter results highlighted by revenue of $492 million, representing a 28% increase from the prior year. Management provided initial guidance for 2024 with revenue expected to growth about 15.5% year over year. We have updated our forecast to reflect Medpace’s continued strong performance thanks to healthy demand for its clinical trial services. We’ve raised our fair value estimate about 5% to $239 per share from $227, and we maintain our narrow economic moat rating. We continue to have a positive long-term outlook for Medpace, and we forecast mid-double-digit to high-single-digit revenue growth over our 10-year forecast period.

Medpace is a global, late-stage contract research organization, or CRO, that provides full-service drug development and clinical trial services to small and midsized biotechnology, pharmaceutical, and medical device firms. The company was founded over 30 years ago in Cincinnati, Ohio. Its operations are principally based in the U.S., but it also operates in Europe, Asia, South America, Africa, and Australia.

Medpace reported strong second-quarter results highlighted by revenue of nearly $461 million, representing a 31% increase from the prior-year period. Medpace is tracking our expectations, and we maintain our fair value estimate of $227 per share. Strong intangible assets and high customer switching costs support the company’s narrow economic moat. We continue to have a positive long-term outlook for Medpace, and we forecast low-double-digit to high-single-digit revenue growth over our 10-year forecast period.

We have launched coverage of Medpace, a global contract research organization, or CRO. We assign Medpace a fair value estimate of $227 per share and view the stock as fairly valued. It’s currently trading in 3-star territory. We believe Medpace has a narrow economic moat and stable moat trend based on its intangible assets and high switching costs for its customers.

Medpace is a global, late-stage contract research organization, or CRO, that provides full-service drug development and clinical trial services to small and midsized biotechnology, pharmaceutical, and medical device firms. The company was founded over 30 years ago in Cincinnati, Ohio. Its operations are principally based in the U.S., but it also operates in Europe, Asia, South America, Africa, and Australia.