Charles Rhyee, an analyst from TD Cowen, maintained the Hold rating on Fortrea Holdings Inc. (FTRE – Research Report). The associated price target was lowered to $11.00.
Charles Rhyee’s rating is based on a combination of factors including Fortrea Holdings Inc.’s current transition phase and its future growth prospects. The company is working on improving its forecasting abilities and aims to enhance its margins as it navigates a revenue gap in its backlog through 2025. However, due to the long-cycle nature of the CRO business, significant growth is unlikely unless there is a notable increase in bookings beyond the company’s targets for the upcoming years.
Rhyee notes that while management’s guidance for 2025 was below market expectations, their efforts to better understand the backlog could lead to improved forecasting. The 2025 revenue is estimated to be within management’s guidance, but with a slight decline in bookings. The company is also expected to realize savings in SG&A, although gross margins might decrease slightly. Looking ahead to 2026, Rhyee anticipates a modest revenue growth and some improvement in gross margins, but the overall outlook remains cautious, leading to the Hold rating.
In another report released on March 4, Barclays also maintained a Hold rating on the stock with a $12.00 price target.