Expert Outlook: Fortrea Holdings Through The Eyes Of 5 Analysts

Across the recent three months, 5 analysts have shared their insights on Fortrea Holdings FTRE, expressing a variety of opinions spanning from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $38.6, with a high estimate of $44.00 and a low estimate of $35.00. This upward trend is evident, with the current average reflecting a 16.09% increase from the previous average price target of $33.25.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Fortrea Holdings among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Fortrea Holdings. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Fortrea Holdings compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Fortrea Holdings's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Fortrea Holdings's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Fortrea Holdings analyst ratings.

Discovering Fortrea Holdings: A Closer Look

Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after LabCorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.

Fortrea Holdings: Financial Performance Dissected

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Fortrea Holdings's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 1.85%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Fortrea Holdings's net margin is impressive, surpassing industry averages. With a net margin of -1.69%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Fortrea Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -0.76%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Fortrea Holdings's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.3%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.0, caution is advised due to increased financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.