Analyst Jeffrey Silber from BMO Capital maintained a Hold rating on Robert Half (RHI – Research Report) and decreased the price target to $75.00 from $80.00.
Jeffrey Silber has given his Hold rating due to a combination of factors affecting Robert Half’s performance and outlook. While the company’s first-quarter earnings per share matched consensus estimates, they fell within the guided range and did not exceed expectations. The stabilization in Talent Solutions, albeit at lower levels, and the less severe year-over-year decline in revenues indicate a less negative trend, yet not a strong enough positive shift to warrant an upgrade in the rating. Additionally, Silber noted that the operating margins in Contract Talent Solutions were only modestly above the midpoint, which does not strongly signal a robust financial recovery.
The projection for the second quarter also influenced Silber’s decision, with revenue guidance slightly below the consensus and anticipated earnings per share notably lower than expected. Despite Robert Half being recognized as a well-managed company within the staffing industry and its efforts to expand technology offerings, the overall performance and market conditions suggest caution. In light of these factors, which include the impact of client budget constraints and seasonally higher costs, as well as the potential for future improvement in client confidence, Silber has determined that a Hold rating is the most appropriate at this time.
Silber covers the Industrials sector, focusing on stocks such as ManpowerGroup, Robert Half, and Trueblue. According to TipRanks, Silber has an average return of 12.2% and a 64.24% success rate on recommended stocks.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Robert Half (RHI) Company Description:
Robert Half International, Inc. engages in the provision of staffing and risk consulting services. It operates through the following segments: Temporary and Consultant Staffing, Permanent Placement Staffing and Risk Consulting & Internal Audit Services. The Temporary and Consultant Staffing segment offers staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing, and web design fields. The Permanent Placement Staffing segment provides full-time personnel in the accounting, finance, administrative & office and information technology fields. The Risk Consulting and Internal Audit Services segment comprises business and technology risk consulting and internal audit services. The company was founded by Robert Half in 1948 and is headquartered in Menlo Park, CA.
