FA Stock Forecast & Price Target

First Advantage Corp has achieved $47 million in run rate synergies, signaling its successful integration efforts and operational efficiencies that are expected to continue improving in the upcoming quarters. The company has demonstrated a robust ability to add new clients and enhance package density, contributing to a 9% year-over-year growth in the second quarter, which positions it well for future expansion. Positive expectations surrounding a recovery in the labor market are anticipated to drive organic growth improvements starting in the third quarter of FY25, further bolstering the company’s outlook.

First Advantage faces a challenging outlook primarily due to spending and hiring pressures from a significant customer, which could adversely impact the company's revenue and EBITDA growth forecasts. Additionally, the integration of the Sterling Check acquisition has proven difficult, leading to underachievement of synergy targets and a potential increase in employee attrition. Furthermore, if a major stakeholder decides to reduce their ownership position, it could create near-term selling pressure that may negatively affect the company's share price.