Analyst Michael Ryskin of Bank of America Securities reiterated a Sell rating on Fortrea Holdings Inc. (FTRE – Research Report), with a price target of $10.00.
Michael Ryskin has given his Sell rating due to a combination of factors affecting Fortrea Holdings Inc. The company reported disappointing fourth-quarter results, with sales, adjusted EBITDA, and adjusted EPS all falling short of expectations. Furthermore, Fortrea’s guidance for fiscal year 2025 indicates sales and EBITDA significantly below market forecasts, primarily due to challenges in converting pre-spin backlog projects into revenue.
Additionally, while Fortrea has initiated cost-saving measures expected to yield benefits in fiscal year 2026, the company has underperformed its peers since its spin-off. The management’s conservative outlook for fiscal year 2026 suggests potential upside, but the timeline is too distant to warrant optimism. Consequently, Michael Ryskin has lowered the price objective and maintains a cautious stance, reiterating an Underperform rating until Fortrea demonstrates consistent improvement.
FTRE’s price has also changed dramatically for the past six months – from $22.150 to $10.380, which is a -53.14% drop .