Fortrea Holdings initiated with a Hold at Deutsche Bank

Deutsche Bank initiated coverage of Fortrea Holdings with a Hold rating and $36 price target. The analyst prefers a better entry point to underwrite the company’s potential margin expansion. The analyst acknowledges significant upside to the equity if the company can improve EBITDA margins to peer levels and the firm also sees strategic action as potential value creating event. However, it prefers a “greater margin of safety” to underwrite Fortrea’s margin expansion, which it says is the key fundamental driver of the stock.