Growth Investors: Industry Analysts Just Upgraded Their Medpace Holdings, Inc. (NASDAQ:MEDP) Revenue Forecasts By 13%

Celebrations may be in order for Medpace Holdings, Inc. (NASDAQ:MEDP) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the five analysts covering Medpace Holdings are now predicting revenues of US$1.7b in 2023. If met, this would reflect a sizeable 23% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$1.5b of revenue in 2023. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

Check out our latest analysis for Medpace Holdings

The consensus price target rose 50% to US$218, with the analysts clearly more optimistic about Medpace Holdings' prospects following this update. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Medpace Holdings analyst has a price target of US$238 per share, while the most pessimistic values it at US$200. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Medpace Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Medpace Holdings'historical trends, as the 18% annualised revenue growth to the end of 2023 is roughly in line with the 21% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.1% per year. So although Medpace Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. The analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Medpace Holdings.

Want to learn more? At least one of Medpace Holdings' five analysts has provided estimates out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.