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On Friday, Truist Securities expressed continued confidence in FTI Consulting (NYSE:FCN), maintaining a Buy rating and a price target of $275.00. Currently trading at $194.21, the stock is near its 52-week low, while InvestingPro analysis indicates the company maintains a "Great" overall financial health score. The firm highlighted FTI Consulting as a top consulting pick for 2025, emphasizing the company’s robust organic growth and its status as a prime destination for talent. Truist anticipates FTI Consulting will benefit from increased merger and acquisition activity expected under the Trump Administration.
Analysts at Truist underscored FTI Consulting’s sustainable growth strategy, which includes a high single-digit increase in billable headcount and a 3-4 percentage point growth in bill rates. The company has already demonstrated strong performance with an 11.66% revenue growth in the last twelve months and maintains healthy financials with a current ratio of 2.08. Additional factors contributing to the company’s growth prospects are general and administrative expense leverage and share repurchases. These elements are projected to drive sales to $10 billion and EBITDA to $1.6 billion over the next decade, marking compound annual growth rates (CAGRs) of 10% and 14% from the consensus estimates of $3.7 billion in sales and $420 million in EBITDA for 2024.
The firm’s analysis suggests that the volume of mergers and acquisitions is a more critical driver for FTI Consulting’s growth than the intensity of regulatory scrutiny. Furthermore, Truist noted that the recent increase in interest rates could lessen the risk of a significant decline in bankruptcy-related work for the company.
Truist’s endorsement of FTI Consulting’s stock is rooted in the company’s potential for long-term growth and its ability to capitalize on favorable market conditions anticipated during the Trump Administration. The firm’s $275.00 price target reflects a conviction in FTI Consulting’s strategic growth initiatives and its positioning within the consulting industry.
In other recent news, FTI Consulting has made strategic moves to strengthen its advisory services in both the telecom and agribusiness sectors. The company announced the appointment of two new Senior Managing Directors, Matteo Dominianni and Alexey Timashkov, to its strategy consulting practice, FTI Delta. Their roles will focus on operational improvements and digital transformation initiatives in the telecom, media, and technology sectors.
In a parallel development, FTI Consulting also expanded its Food, Agriculture & Beverage practice with the addition of Polly Ruhland as Senior Managing Director and Cassandra Oliveira as Managing Director. Ruhland will advise clients on enhancing supply chain operations and improving sustainability practices, while Oliveira will assist with mergers and acquisitions, growth initiatives, and commercial transformations in the agribusiness sector.
These recent developments are part of FTI Consulting’s broader effort to address the complex needs of clients in evolving market landscapes. The company, which reported revenues of $3.49 billion for the fiscal year 2023, is expected to benefit from the unique industry insights and operational experience that these new appointments bring. The information for this report is based on press release statements from FTI Consulting, Inc.
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