Truist raises Heidrick & Struggles price target on strong sector data

Published 20/06/2025, 15:26
Truist raises Heidrick & Struggles price target on strong sector data

Investing.com - Truist Securities raised its price target on Heidrick & Struggles (NASDAQ:HSII) stock to $46.00 from $44.00 on Friday, while maintaining a Hold rating on the executive search firm.

The price target increase reflects a 6.6x EBITDA multiple on Truist’s 2026 estimates, up from the previous 6.3x multiple, though the firm’s overall estimates for Heidrick & Struggles remain unchanged.

Truist cited positive results reported by competitor Korn Ferry (NYSE:KFY) on Friday morning as a key factor in its decision to raise the price target for Heidrick & Struggles.

Korn Ferry also indicated that its business performance in May was stronger than April, suggesting sequential improvement in the executive search market despite concerns about potential tariff-driven uncertainty.

The analyst noted that Korn Ferry’s results and May performance signal that the executive search market remains strong, countering investor worries about cyclical impacts on demand in the sector.

In other recent news, Heidrick & Struggles International reported its first-quarter 2025 earnings, revealing a revenue of $284 million, which exceeded analyst expectations of $264.37 million. Despite the revenue beat, the adjusted earnings per share (EPS) came in at $0.67, slightly below the forecast of $0.68. The company also highlighted a strong cash position with an increase to $325 million. Analysts from Sidoti and Company noted the company’s adaptability in weathering economic challenges. Heidrick & Struggles projected second-quarter revenue between $285 million and $305 million, aiming for mid to high single-digit organic revenue growth. The company continues to focus on digital tools and innovation to meet the evolving needs of its clients. Additionally, Heidrick & Struggles remains committed to organic growth and talent development across various sectors, including financial services, technology, industrials, and consumer markets.

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