First Advantage

FA · NASDAQ

$19.56+$0.61 (+3.22%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $18.95

FA analyst rating

BuyConsensus of 5 analysts over the last 12 months. 60% rate it a buy.

Strong buy0
Buy3
Hold2
Underperform0
Sell0

12-month price target · 12 analysts

Average $26.02 (+33.0% upside)

Low: $22.22
Now: $19.56
High: $31.50

Upgrades and downgrades

The latest rating actions, newest first

FA analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Citigroup	Aug 17, 2026	Maintains	Neutral	$18.00 → $22.00	46%
RBC Capital	Aug 7, 2026	Maintains	Sector Perform	$21.00 → $24.00	64%
Barclays	Aug 7, 2026	Maintains	Overweight	$20.00 → $30.00	64%
Needham	Aug 6, 2026	Upgrade	Hold → Buy	$28.00	40%
RBC Capital	Aug 3, 2026	Maintains	Sector Perform	$17.00 → $21.00	64%
Citigroup	May 11, 2026	Maintains	Neutral	$15.00 → $18.00	46%
JP Morgan	May 8, 2026	Maintains	Overweight	$15.00 → $18.00	64%
Barclays	May 8, 2026	Maintains	Overweight	$15.00 → $20.00	64%
Citigroup	Mar 6, 2026	Maintains	Neutral	$16.00 → $15.00	46%
Barclays	Mar 6, 2026	Upgrade	Equal-Weight → Overweight	$14.00 → $15.00	64%

The case for and against

Updated Oct 18, 2026

Bull case

First Advantage is positioned favorably because 2Q26 showed broad-based operating momentum, with revenue up ~14.9% to ~$449 million, adjusted EBITDA of $128.5 million at a 28.6% margin, and EPS of $0.35, all ahead of expectations. Its outlook is supported by 96% retention, 12.5% combined new logo and upsell/cross-sell growth, and stronger base growth of 6.7%, suggesting demand is improving beyond temporary workforce reshaping projects. Management also raised FY26 guidance and continues to reduce leverage, with about $165 million of debt repaid since the Sterling acquisition and net leverage down to 3.7x, while AI-driven automation, proprietary databases, and a leading global platform reinforce long-term organic growth potential.

Bear case

First Advantage is facing a cautious fundamental setup because 2H26 growth is expected to slow from MSD-HSD in 3Q to LSD-MSD in 4Q as tougher comps and the full annualization of three large 2025 contract go-lives weigh on momentum. Although adj EBITDA margins should hold near 28.6% and adj EPS is projected in the low-to-mid $0.30s, the company still faces meaningful execution risks from delayed enterprise implementations, only $12m of unrealized synergies, and ongoing uncertainty around federal healthcare funding. Its negative outlook is further reinforced by macro sensitivity in hiring, softer healthcare demand, India volume pressure from the Iran conflict, and a potential overhang from Silver Lake’s ~52% ownership.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.