In a report released today, 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 impacting Fortrea Holdings Inc. The company is facing challenges in 2026, with anticipated difficulties in the first half of the year for business-to-business operations and ongoing passthroughs that may compress revenue and margins. Although the consensus for 2026 EBITDA growth is at 13%, Rhyee believes this estimate might be optimistic given the current conditions.
Despite these challenges, there are positive signs such as an improving macroeconomic environment, particularly in the biotech sector, and a strong performance in the third quarter, where Fortrea exceeded expectations in revenue, EBITDA, and business-to-business metrics. The company has also noted cost-saving measures that could alleviate some margin pressures and has a strong win rate with new strategic partnerships. These factors suggest potential for recovery and a rebound in 2027, but the immediate outlook for 2026 remains cautious, justifying the Hold rating.
In another report released today, Citi also maintained a Hold rating on the stock with a $12.00 price target.