In a report released yesterday, Charles Rhyee from TD Cowen maintained a Hold rating on Fortrea Holdings Inc., with a price target of $7.00.
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Charles Rhyee has given his Hold rating due to a combination of factors including the updated financial estimates and guidance for Fortrea Holdings Inc. The company’s revenue guidance has been raised to a range of $2.6 billion to $2.7 billion, reflecting an optimistic outlook compared to previous estimates. However, despite this positive adjustment, the projected EBITDA margins remain modest, with an estimated 8% margin in 2026.
Furthermore, the price target for Fortrea Holdings Inc. has been increased from $5 to $7, based on a discounted cash flow analysis. This suggests that while there is potential for the stock to trade at higher multiples, the overall growth prospects and financial performance do not currently justify a more aggressive rating than Hold. The combination of these financial metrics and market expectations supports the decision to maintain a cautious stance on the stock.
In another report released on August 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $7.00 price target.