First Advantage: Strong Financial Performance and Strategic Positioning Justify Buy Rating

William Blair analyst Andrew Nicholas has reiterated their bullish stance on FA stock, giving a Buy rating on April 23.

Andrew Nicholas has given his Buy rating due to a combination of factors that highlight First Advantage’s strong financial performance and strategic positioning. The company reported revenue and earnings that exceeded both internal and market expectations, with revenue reaching $355 million, which was above both the firm’s and the market’s estimates. This financial outperformance was driven by effective cost management, leading to higher-than-expected adjusted EBITDA and EPS figures.
Additionally, First Advantage’s reaffirmation of its full-year guidance for 2025 further supports the positive outlook, with projections for revenue, adjusted EBITDA, and EPS indicating continued growth. Nicholas also emphasizes the company’s competitive edge as a market leader and the strategic benefits from its merger with Sterling, which enhances its market position. Despite potential risks related to integration and economic cyclicality, the attractive valuation and strong market position underpin the Buy rating.

In another report released on April 23, RBC Capital also maintained a Buy rating on the stock with a $20.00 price target.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FA in relation to earlier this year.