TD Cowen analyst Charles Rhyee upgraded the rating on Fortrea Holdings Inc. to a Buy today, setting a price target of $15.00.
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Charles Rhyee has given his Buy rating due to a combination of factors tied to Fortrea’s strengthening fundamentals and an improving industry backdrop. He highlights that recent bookings have accelerated, with the second half book‑to‑bill meaningfully above the first half, suggesting that the company’s more disciplined commercial execution is gaining traction and that its 2026 bookings outlook is likely set at a cautious level.
At the same time, he notes that management’s 2026 profit guidance implies solid double‑digit EBITDA growth despite a slight revenue dip, driven by lower pass‑through revenue and additional cost‑efficiency measures. Rhyee also argues that investor concerns about artificial intelligence disrupting demand are exaggerated, citing expert feedback that large drug makers are more likely to reinvest any AI‑related savings into new R&D programs, which should support ongoing demand for Fortrea’s services.
In another report released on March 2, Evercore ISI also maintained a Buy rating on the stock with a $25.00 price target.