Jefferies downgraded Medpace Holdings Inc. (NASDAQ:MEDP) from Buy to Hold. The firm simultaneously increased its price target from $490.00 to $515.00. Analysts noted the stock appreciated 77% over the past year, leading to stretched valuation multiples.
A depleted reservoir of potential bookings makes near-term sequential backlog growth unlikely. Medpace previously reported an increase in cancellations within its backlog and pre-backlog pipeline. These factors create uncertainty surrounding the company’s 2026 guidance.
Jefferies suggests a book-to-bill ratio above 1.0x is necessary for a positive outlook. Analysts expect this development to occur in the third quarter. BMO Capital and Mizuho also recently adjusted their price targets following these cancellation trends.