Fortrea Holdings initiated with a Hold at TD Cowen

TD Cowen analyst Charles Rhyee initiated coverage of Fortrea Holdings with a Hold rating and $27 price target. Fortrea has a “solid foundation for the long term” and “significant untapped earnings power” of $4-$5 per share, the analyst tells investors in a research note. However, the firm sees multiple factors near-to-medium term that may limit meeting growth and margin expansion targets. TD looks for more consistency in Fortrea’s bookings growth with book-to-bills greater than 1.2 times before becoming more constructive.