Fortrea downgraded to Hold from Buy at Jefferies

Jefferies downgraded Fortrea to Hold from Buy with a price target of $21, down from $25. The firm recommends reducing exposure to the contract research organizations. Several CROs, public and private, have highlighted a slowing biotech market, particularly pre-proof-of concept, the analyst tells investors in a research note. Jefferies says Fortrea has greater exposure to small biotech than peers and notes its Phase I slice, where activity has been slow, is bigger than competitors. It believes the stock’s valuation can’t support deteriorating fundamentals.