Fortrea Holdings Inc. Faces Revenue and EBITDA Decline Amid Challenging Market Dynamics, Hold Rating Issued

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.