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 $7.00.
Charles Rhyee has given his Hold rating due to a combination of factors including the challenging dynamics in both the biotech and large pharma markets, which have led to a downward revision in revenue and EBITDA estimates for Fortrea Holdings Inc. The 2025 revenue is projected to decrease by 8% year-over-year to $2.48 billion, with an adjusted EBITDA of $166 million, reflecting a 16% decline and a margin of 6.7%.
Additionally, the company’s backlog review has resulted in a lower revenue outlook for 2025, with a bookings estimate of $2.48 billion, down approximately 3% year-over-year. Despite these challenges, there is an expectation of revenue growth starting in the first quarter of 2026, with an adjusted EBITDA increase of 28% year-over-year to $212 million. The price target has been adjusted to $7 from $11, based on a discounted cash flow analysis, suggesting that the shares can trade at 8 times the estimated 2026 EBITDA.
In another report released on April 9, Mizuho Securities also maintained a Hold rating on the stock with a $10.00 price target.