FA Stock Forecast & Price Target

First Advantage Corp has successfully achieved $47 million in run rate synergies, signaling strong operational efficiency and the potential for further enhancements in the upcoming quarters. The company demonstrates robust performance metrics, highlighted by a 9% year-over-year growth contribution in the second quarter through the acquisition of new clients and increased package density. A positive outlook is supported by expectations of an improving labor market, which could lead to organic growth commencing in the third quarter of fiscal year 2025 and continuing to strengthen throughout the year.

First Advantage Corp faces potential revenue and EBITDA growth pressure due to spending and hiring constraints from a significant customer. Additionally, challenges related to the integration of the Sterling Check acquisition may hinder the company's ability to meet synergy targets, possibly increasing employee attrition. Furthermore, any reduction in ownership by this major stakeholder could result in near-term selling pressure, negatively impacting the share price.