Medpace (MEDP) strong bookings and healthy pipeline could support revenue growth above current expectations, with management's preliminary outlook for 2027 potentially proving conservative, UBS Securities said in a note Friday.
The brokerage said strong pending requests for proposals and faster growth in pre-backlog support its outlook for service fee revenue. Management expects an increase in awards in the fourth quarter and said service fee revenue growth could outpace pass-through revenue growth.
UBS raised its service fee revenue growth estimates for 2027 and 2028, citing strong bookings growth and elevated pre-backlog inflows.
The brokerage also highlighted the company's Cincinnati headquarters expansion as supporting organic growth, although the new facility is expected to add $20 million in operating expenses in 2027.
UBS maintained a neutral rating and raised its price target to $700 from $673.
Shares of Medpace were up 1.4% in Friday afternoon trading.
Price: 663.45, Change: +9.49, Percent Change: +1.45
