Analyst Expectations For Fortrea Holdings's Future

In the latest quarter, 10 analysts provided ratings for Fortrea Holdings FTRE, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $25.1, a high estimate of $30.00, and a low estimate of $21.00. Observing a downward trend, the current average is 18.16% lower than the prior average price target of $30.67.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Fortrea Holdings. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Fortrea Holdings. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Fortrea Holdings compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Fortrea Holdings's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Fortrea Holdings's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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All You Need to Know About 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.

Unraveling the Financial Story of Fortrea Holdings

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Fortrea Holdings faced challenges, resulting in a decline of approximately -8.65% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, 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 -20.89%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Fortrea Holdings's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -9.07%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Fortrea Holdings's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -3.55%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Fortrea Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.82, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

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.