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Fortrea Holdings downgraded to In Line from Outperform at Evercore ISI

Evercore ISI analyst Elizabeth Anderson downgraded Fortrea Holdings to In Line from Outperform with a price target of $27, down from $31. Weaker biotech funding data and pharma R&D spending, along with weakening forward indicators for peers who have already reported, point to a decelerating demand environment, prompting a move to the sidelines, the analyst tells investors. The firm has lowered its revenue estimates to reflect this change in macro view while also broadly lowering its EBITDA estimates given the increased difficulty of driving operating leverage with slower revenue growth, the analyst noted.

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