Mizuho initiated coverage of Fortrea Holdings Inc (NASDAQ: FTRE), while assigning a “Neutral” investment rating and a price target of $27 on the stock.
Mizuho cited low near-term earnings visibility resulting from market share losses associated with its spin-out from Labcorp last year.
Mizuho said it saw the likely path to Fortrea Holdings’ recovery in 2025-2026.
“While the margin expansion story is compelling, given the company’s leverage profile, we prefer to see solid evidence of execution before potentially becoming more constructive,” the investment bank said in a note.
Stock Performance
The shares of Fortrea Holdings Inc (FTRE) closed 1.37% ($0.35) lower at $25.20 on Nasdaq on Tuesday, as they extended the losses from the previous two market sessions.
The company’s total market cap now stands at $2.252 billion.
The shares of Fortrea Holdings Inc (FTRE) went up 15.95% in 2023, compared with a 43.42% gain for the benchmark index, Nasdaq Composite (IXIC).
The company’s shares have retreated 27.79% so far this year.
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