Recruit Holdings stock upgraded to Buy at Goldman Sachs on Indeed monetization

Published 27/07/2025, 14:32
Recruit Holdings stock upgraded to Buy at Goldman Sachs on Indeed monetization

Investing.com - Goldman Sachs has upgraded Recruit Holdings Co., Ltd (TYO:6098:JP) (OTC:RCRUY) from Neutral to Buy and raised its price target to JPY10,000.00 from JPY8,200.00.

The upgrade reflects Goldman Sachs’ view that the market underappreciates potential upside from Recruit’s focus on value-added services and monetization initiatives at its Indeed job platform.

Goldman Sachs expects Indeed’s revenue per hire in the US to increase from US$644 in FY3/25 to US$1,037 in FY3/30 as the company transitions from a volume-focused search engine to a quality-focused marketplace with enhanced capabilities.

The firm’s FY3/28 operating profit estimate is 16% above Bloomberg consensus, despite conservative assumptions regarding declining US job openings and uncertain macroeconomic conditions.

Goldman Sachs cites Recruit’s near all-time low valuations and strong commitment to share buybacks as factors making the current price an attractive entry point, with 13% upside to their target price.

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