Goldman Sachs Starts Fortrea (FTRE) at Neutral

Goldman Sachs analyst Matthew Sykes initiates coverage on Fortrea (NASDAQ: FTRE) with a Neutral rating and a price target of $28.00.

The analyst comments: "Longer term we see potential for FTRE becoming a compelling turnaround story. However, given the number of moving parts and legacy issues surrounding the spin off from LH, we believe execution remains key and we will closely monitor evidence of more consistent execution before becoming more positive. While we see no structural reasons for FTRE to not achieve a long term objective of 15-16% EBITDA margins, recent performance (though largely related to legacy issues) leaves us looking for more consistent evidence of improvement in what is a very competitive industry. We also look towards where FTRE will be able to differentiate their services vs the larger competitors as well as more specialized companies. We believe FTRE currently has the advantage of being nimble enough to service the needs of customers who might be concerned about the lack of personalized solutions from larger CROs, however it will take time to measure the relative success of this advantage at the same time they are de-levering and investing in growth."

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 $27.35 yesterday.

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