Fortrea Holdings initiated with a Neutral at Mizuho

Mizuho analyst Ann Hynes initiated coverage of Fortrea Holdings with a Neutral rating and $27 price target. The analyst believes the company’s near-term earnings visibility is low due to market share losses as a result of the spin from Labcorp’s Covance. While Fortrea’s margin expansion story is compelling, given its leverage profile, Mizuho prefers to see solid evidence of execution before potentially becoming more constructive, the analyst tells investors in a research note.