BofA starts Labcorp spinoff Fortrea with an Underperform

As previously reported, BofA analyst Derik de Bruin initiated coverage of Fortrea Holdings (FTRE) with an Underperform rating and $27 price target following its spinoff from Labcorp (LH) last month. The late-stage contract research organization, or CRO, is better as a standalone entity, but has underperformed peers historically and the firm doesn’t see this changing quickly, the analyst tells investors. A discount to peers is “warranted at this time,” the firm added.