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Global Demographic Trends Will Spur Clinical Advances

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FTRE
AnalystConsensusTarget
Not Invested
Published 17 May 2025

Update shared on07 Aug 2025

Fair value Increased 12%
AnalystConsensusTarget's Fair Value
US$7.44
6.1% overvalued intrinsic discount
15 Aug
US$7.89
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1Y
-64.8%
7D
7.9%

Fortrea Holdings’ price target has been revised upward to $7.02, primarily due to solid earnings visibility and positive physician survey results for hospital segments, despite cost challenges in managed care and a neutral outlook in clinical laboratories.


Analyst Commentary


  • Earnings visibility remains solid for hospital-focused segments.
  • Cost trends are presenting ongoing challenges for managed care companies.
  • Physician survey results are positive for hospital businesses.
  • Outlook is neutral for the clinical laboratory segment.
  • Managed care outlook is neutral-to-negative due to sector-specific headwinds.

What's in the News


  • Fortrea Holdings raised its full-year 2025 revenue guidance to $2,600–$2,700 million.
  • The company reported a non-cash goodwill impairment charge of $309.1 million for Q2 2025.
  • A class action lawsuit has been filed against Fortrea Holdings and certain officers, alleging violations of federal securities laws.
  • Fortrea was dropped from multiple Russell growth, value, and midcap indices but added to the Russell 2000, Russell 2000 Value, and Russell 2000 Dynamic indices.
  • Anshul Thakral was appointed CEO, succeeding interim CEO Peter M. Neupert, who remains chairman.

Valuation Changes


Summary of Valuation Changes for Fortrea Holdings

  • The Consensus Analyst Price Target has risen from $6.66 to $7.02.
  • The Consensus Revenue Growth forecasts for Fortrea Holdings has significantly fallen from -0.0% per annum to -0.1% per annum.
  • The Net Profit Margin for Fortrea Holdings has risen slightly from 13.76% to 14.23%.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.