Key Takeaways From Fortrea Holdings Analyst Ratings

Across the recent three months, 4 analysts have shared their insights on Fortrea Holdings FTRE, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $38.75, a high estimate of $44.00, and a low estimate of $35.00. This current average reflects an increase of 7.64% from the previous average price target of $36.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Fortrea Holdings by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Fortrea Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Fortrea Holdings compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Fortrea Holdings's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Fortrea Holdings's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Fortrea Holdings analyst ratings.

Unveiling the Story Behind Fortrea Holdings

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.

Understanding the Numbers: Fortrea Holdings's Finances

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Fortrea Holdings showcased positive performance, achieving a revenue growth rate of 1.85% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -1.69%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -0.76%, the company may need to address challenges in generating satisfactory 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: Fortrea Holdings's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.0, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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