Jailendra Singh, an analyst from Truist Financial, has initiated a new Hold rating on Fortrea Holdings Inc. (FTRE).
Jailendra Singh has given his Hold rating due to a combination of factors influencing Fortrea Holdings Inc.’s current market position. The company’s performance since its spin-off has been inconsistent, and the broader macroeconomic environment for the Contract Research Organization (CRO) industry remains uncertain. Singh notes that while Fortrea has a balanced business mix between large pharmaceutical companies and biotech firms, its execution post-spin-off has been below average, affecting its operational credibility.
Furthermore, recent communications from Fortrea have raised concerns about the company’s visibility and management’s credibility, particularly with unexpected revenue declines and slower margin improvements anticipated for 2025. Singh emphasizes the importance of near-term execution as a critical factor for restoring investor confidence and believes that consistent delivery on growth and margin targets is necessary before recommending a more favorable rating. Until Fortrea demonstrates improved operational performance and narrows its margin gap relative to peers, Singh maintains a cautious stance with a Hold rating and a price target of $7.
According to TipRanks, Singh is an analyst with an average return of -16.3% and a 33.05% success rate. Singh covers the Healthcare sector, focusing on stocks such as Icon, Evolent Health, and Teladoc.
In another report released on April 14, TD Cowen also maintained a Hold rating on the stock with a $7.00 price target.