Fortrea (NASDAQ:FTRE) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Fortrea from “buy” to “hold,” adding to a mixed analyst outlook on the stock.
• Despite the downgrade, analyst sentiment remains moderate overall: Fortrea has a consensus rating of “Moderate Buy” with an average price target of $17.75.
• Fortrea’s latest earnings beat expectations, reporting $0.16 EPS versus the $0.03 estimate and revenue of $636.5 million, while the stock recently traded near its 52-week high.

Fortrea (NASDAQ:FTRE - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Tuesday.

Other analysts have also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $14.00 target price on shares of Fortrea in a report on Thursday, May 7th. Zacks Research raised Fortrea from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 6th. Truist Financial set a $19.00 target price on Fortrea in a research report on Wednesday, May 6th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Fortrea in a report on Tuesday, April 21st. Finally, Citigroup increased their price objective on Fortrea from $16.00 to $20.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Fortrea presently has an average rating of "Moderate Buy" and a consensus price target of $17.75.

Fortrea Price Performance

Fortrea stock opened at $17.73 on Tuesday. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 1.98. Fortrea has a 52-week low of $4.57 and a 52-week high of $18.67. The firm has a market cap of $1.68 billion, a PE ratio of -3.61, a price-to-earnings-growth ratio of 0.54 and a beta of 2.03. The company's 50 day moving average is $16.05 and its two-hundred day moving average is $13.68.

Fortrea (NASDAQ:FTRE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.03 by $0.13. Fortrea had a positive return on equity of 9.51% and a negative net margin of 16.50%.The business had revenue of $636.50 million for the quarter, compared to analyst estimates of $628.50 million. On average, research analysts expect that Fortrea will post 0.8 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Assenagon Asset Management S.A. raised its holdings in Fortrea by 90.7% during the second quarter. Assenagon Asset Management S.A. now owns 173,129 shares of the company's stock worth $3,012,000 after purchasing an additional 82,349 shares in the last quarter. Essential Partners LLC raised its position in Fortrea by 140.2% in the first quarter. Essential Partners LLC now owns 9,675 shares of the company's stock worth $91,000 after acquiring an additional 5,647 shares in the last quarter. Amundi boosted its stake in shares of Fortrea by 20.2% during the 1st quarter. Amundi now owns 12,490 shares of the company's stock worth $118,000 after acquiring an additional 2,101 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in Fortrea by 9.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 10,936 shares of the company's stock valued at $103,000 after purchasing an additional 953 shares in the last quarter. Finally, California State Teachers Retirement System raised its holdings in Fortrea by 51.3% during the first quarter. California State Teachers Retirement System now owns 132,369 shares of the company's stock worth $1,247,000 after purchasing an additional 44,882 shares during the last quarter.

About Fortrea

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific's Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company's comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea's core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.

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