Medpace's (MEDP) recovery in bookings, normalization of cancellations, and pre-backlog pipeline support its growth into 2027, RBC Capital Markets said in a note Thursday.
The company's Request for Proposal, or RFP, grew "meaningfully" in Q2 from a year earlier, and pre-backlog awards continued growing faster than backlog itself, the investment firm said.
Management expects net bookings to ramp "quite a bit" in H2, provided there isn't a rise in cancellations, according to the note.
The firm said Medpace's interim burn rate is expected to remain elevated before a potential gradual decline over the next couple of years as new bookings scale.
RBC Capital Markets retained an outperform rating on the stock and increased its price target to $692 from $484.
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