Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Kepler Cheuvreux initiated coverage on recruitment firm Hays (LON:HAYS) Plc. (LON:HAS) with a Hold rating and a price target of GBP0.68, citing continued weakness in key labor markets.
The research firm’s decision follows Hays’ profit warning issued on June 19, which highlighted declining activity levels during the fourth quarter ending in June, particularly affecting the company’s permanent placement business.
Kepler Cheuvreux expressed caution about Hays’ near-term prospects, pointing to ongoing labor market softness in the company’s key markets of Germany, the United Kingdom (TADAWUL:4280), and Australia.
While the firm acknowledged that increased investment spending in Germany could potentially support hiring activity in the medium term, it does not anticipate any meaningful impact on labor market activity before the end of 2025.
Hays continues to face weak demand in several sectors where it has significant exposure, including the public sector, engineering (particularly automotive), and IT staffing, with uncertainty around dividends and absence of near-term catalysts further limiting the investment case, according to Kepler Cheuvreux.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.