Truist Securities Upgrades Fortrea (FTRE) to Buy

Truist Securities analyst Jaliendra Singh upgraded Fortrea (NASDAQ: FTRE) from Hold to Buy with a price target of $22.00 (from $12.00).

The analyst comments: "We are upgrading our rating on FTRE shares to Buy from Hold with a $22 PT, which is based on 12x EV/EBITDA multiple on our 2027 EBITDA estimates. Our upgrade reflects improving execution under new leadership, early signs of commercial momentum, and a relatively clearer path to margin recovery. After two years of idiosyncratic and macro issues obstructing the company’s path forward post-spin-off, investor sentiment is turning more constructive as the new CEO articulates a focused strategy around commercial excellence, operational efficiency, and financial discipline. FTRE’s RFP volumes were up 40% Q/Q in Q3 with new customers, which reflects the company's deliberate efforts to build internal capabilities focused on engaging clients it hasn't traditionally worked with. While revenue growth will likely remain muted in 2026 given the relatively softer book-to-bills in 1H25, we see key drivers that support our Buy thesis, including progress on biotech and large pharma engagement that drive net new business wins and cost savings initiatives driving continued margin improvement. Once FTRE demonstrates consistent revenue trends, we don't see structural impediments to achieving margins more in line with peers, supported by the new leadership team’s discipline and focus."

For an analyst ratings summary and ratings history on Fortrea click here. For more ratings news on Fortrea click here.

Shares of Fortrea closed at $17.49 yesterday.

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