Jefferies raises Fortrea stock price target to $7 on cleaner income statement

Published 08/08/2025, 11:26
Jefferies raises Fortrea stock price target to $7 on cleaner income statement

Investing.com - Jefferies raised its price target on Fortrea (NASDAQ:FTRE) to $7.00 from $5.00 on Friday, while maintaining a Hold rating on the stock. The stock, currently trading at $7.24, has shown significant momentum with a 32.6% gain over the past week, according to InvestingPro data.

The research firm cited "cleaner income statement items" in the second quarter, noting that Fortrea delivered stronger revenue, EBITDA margin, and earnings per share than consensus expectations.

Despite these positive financial metrics, Jefferies pointed out that second-quarter bookings missed expectations by more than $100 million, which management attributed to biotech losses during the CEO transition period.

While acknowledging the impact of the CEO transition, Jefferies expressed concern about a "sluggish, competitive demand environment" that makes rapid improvement in bookings-to-billings challenging for Fortrea.

The firm also noted that second-quarter revenue benefited from higher pass-throughs, which are expected to moderate in the second half of the year, leading Jefferies to reduce its 2026 growth forecast for Fortrea by 5%.

In other recent news, Fortrea Holdings Inc. reported a significant earnings beat for the second quarter of 2025. The company announced earnings per share of $0.19, which surpassed analyst forecasts of $0.08. Revenue also exceeded expectations, reaching $710.3 million compared to the projected $631.5 million. These results highlight Fortrea Holdings’ strong financial performance in the recent quarter. The company’s earnings and revenue figures have garnered attention from investors and analysts alike. Additionally, the positive financial results could influence future analyst ratings and investor sentiment. These developments are part of a series of recent updates from Fortrea Holdings, indicating robust growth and operational success.

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