Fortrea (NASDAQ:FTRE) Downgraded by Mizuho to Underperform

Key Points

• Mizuho downgraded Fortrea to Underperform from Neutral, while raising its price target from $16 to $19; the new target implies 11.17% downside from the prior close.
• Analyst views are mixed: Fortrea has an average rating of Hold and an average price target of $24.23, with ratings ranging from Strong Buy to Sell.
• Fortrea reported quarterly EPS of $0.28, beating the $0.22 consensus estimate, and revenue of $691.5 million versus expectations of $671.57 million.

Fortrea (NASDAQ:FTRE - Get Free Report) was downgraded by research analysts at Mizuho from a "neutral" rating to an "underperform" rating in a research note issued to investors on Wednesday, FinViz reports. They currently have a $19.00 price objective on the stock, up from their prior price objective of $16.00. Mizuho's price target would indicate a potential downside of 11.17% from the company's previous close.

Other analysts also recently issued reports about the company. Barclays upped their price objective on Fortrea from $23.00 to $26.00 and gave the company an "overweight" rating in a research report on Friday, October 30th. TD Cowen boosted their target price on shares of Fortrea from $23.00 to $26.00 and gave the company a "buy" rating in a research note on Monday, November 2nd. Evercore restated an "outperform" rating on shares of Fortrea in a report on Wednesday, July 29th. Zacks Research cut shares of Fortrea from a "hold" rating to a "strong sell" rating in a research note on Monday, October 12th. Finally, Wall Street Zen downgraded shares of Fortrea from a "buy" rating to a "hold" rating in a report on Saturday, October 31st. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $24.23.

Fortrea Price Performance

Fortrea stock opened at $21.39 on Wednesday. The firm's 50-day simple moving average is $20.64 and its 200 day simple moving average is $15.90. The firm has a market capitalization of $2.06 billion, a PE ratio of -29.30, a P/E/G ratio of 0.56 and a beta of 1.88. Fortrea has a 52 week low of $8.55 and a 52 week high of $26.16. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 1.94.

Fortrea (NASDAQ:FTRE - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.06. The firm had revenue of $691.50 million during the quarter, compared to the consensus estimate of $671.57 million. Fortrea had a positive return on equity of 13.98% and a negative net margin of 2.58%. On average, equities research analysts predict that Fortrea will post 0.85 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Private Wealth Asset Management LLC grew its holdings in Fortrea by 7,558.3% in the third quarter. Private Wealth Asset Management LLC now owns 16,159 shares of the company's stock valued at $355,000 after purchasing an additional 15,948 shares during the period. Focus Advisor Solutions LLC raised its stake in Fortrea by 53.2% during the third quarter. Focus Advisor Solutions LLC now owns 30,256 shares of the company's stock worth $604,000 after purchasing an additional 10,501 shares during the period. Boston Partners purchased a new position in Fortrea during the third quarter worth approximately $2,539,000. First Eagle Investment Management LLC acquired a new position in shares of Fortrea in the 3rd quarter valued at $6,091,000. Finally, Intech Investment Management LLC boosted its holdings in shares of Fortrea by 26.0% in the 3rd quarter. Intech Investment Management LLC now owns 51,106 shares of the company's stock valued at $1,020,000 after purchasing an additional 10,535 shares during the last quarter.

Fortrea Company Profile

Fortrea Holdings Inc. is a global contract research organization that provides clinical development and patient access services to pharmaceutical, biotechnology and medical device companies. The company supports the development of medicines and medical products from early research through later-stage clinical trials and post-approval studies. Its services include clinical trial planning and management, clinical pharmacology, patient recruitment and engagement, data management, regulatory support and related consulting.

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