Deutsche Bank revises Robert Walters stock target, maintains Buy recommendation

Published 15/01/2025, 10:54
Deutsche Bank revises Robert Walters stock target, maintains Buy recommendation

On Wednesday, Deutsche Bank (ETR:DBKGn)'s analysts adjusted their outlook on Robert Walters PLC (RWA:LN), a prominent recruitment firm, by reducing the price target from GBP5.50 to GBP4.50. Despite this change, they maintained a Buy rating on the company's stock.

The adjustment came after the firm reported a 14% year-over-year decline in group net fees, which amounted to £75.5 million. The reduction was primarily due to a 10% decrease in recruitment and temporary fees. Regionally, the Asia Pacific market, accounting for approximately 45% of the group's fees, saw an 11% decline. This was significantly influenced by a 15% drop in Greater China.

In addition to regional performance, consultant headcount decreased by 7% quarter-over-quarter and was 17% lower year-over-year. While activity levels within the company remained robust, the extended time-to-hire has been a challenge. The analyst noted that these trends were consistent with those seen across the industry.

Political uncertainty and challenging macroeconomic conditions have compounded the difficulties faced by Robert Walters. Net fees in key European markets reflected these challenges, with France experiencing a 17% decline, Germany a 21% drop—despite an improved exit rate—and the Netherlands a 24% fall. Spain, in particular, faced a steep 34% decline in fees when compared to the previous year's comparatives.

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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