Deutsche Bank lowers Hays price target on weak hiring market

Published 20/06/2025, 10:18
Deutsche Bank lowers Hays price target on weak hiring market

Investing.com - Deutsche Bank (ETR:DBKGn) lowered its price target on Hays (LON:HAYS) Plc. (HAS:LN) (OTC:HAYPF) to GBP1.00 from GBP1.10 on Wednesday, while maintaining a Buy rating on the recruitment firm’s stock amid deteriorating market conditions.

The price target reduction follows Hays management’s indication that business activity has weakened since its April 16 third-quarter results, with broad-based weakness in permanent hiring markets globally reflecting low client and candidate confidence due to macroeconomic uncertainty.

Hays expects fourth-quarter net fees to decline by 9% year-over-year, similar to the third quarter despite an easier comparative period, with permanent placement fees performing 10% below management’s expectations in absolute terms, falling 14% compared to the same period last year.

Temporary and contract staffing proved more resilient but still declined 5% year-over-year, as job registrations across the business have decreased in the current quarter.

Management anticipates the challenging market conditions that have affected hiring activity will persist into fiscal year 2026, extending the difficult operating environment for the recruitment firm beyond the current reporting period.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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