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Truist Securities raised its price target on Korn/Ferry (NYSE:KFY) stock to $88.00 from $80.00 on Wednesday, while maintaining a Buy rating on the human capital firm. The company, with a market capitalization of $3.45 billion and a P/E ratio of 15.2, currently offers a 2.88% dividend yield.
The price target increase followed Korn/Ferry’s fourth-quarter fiscal 2024 results, which exceeded market expectations. The company’s shares rose 6% on Wednesday while the broader S&P index remained flat.
Truist attributed the stock’s performance to what it believes were low investor expectations amid concerns that tariff-driven uncertainty might impact demand for the firm’s services. The firm noted that Korn/Ferry’s guidance for the first quarter of fiscal 2026 was in-line to slightly above consensus estimates. InvestingPro subscribers can access 8 additional key insights about KFY’s valuation and financial health.
The analyst report highlighted an approximately 8-percentage-point difference in sequential revenue growth guidance between Korn/Ferry and its peer Heidrick & Struggles (HSII), suggesting potential conservatism in Korn/Ferry’s outlook.
Truist identified Korn/Ferry as its preferred investment in the Human Capital sector, citing the strong quarterly results and guidance as factors behind its decision to raise both earnings estimates and the price target.
In other recent news, Korn Ferry reported a strong fiscal fourth quarter for 2025, exceeding analysts’ expectations with an adjusted EPS of $1.32 compared to the forecast of $1.26. The company’s revenue also surpassed projections, reaching $712 million against the anticipated $690.07 million. Korn Ferry’s adjusted EBITDA grew by 8%, with a margin increase of 70 basis points, reflecting improved operational efficiency. The company returned $173 million to shareholders through buybacks and dividends, demonstrating a commitment to shareholder value. Additionally, Korn Ferry anticipates fee revenue between $675 million and $695 million for Q1 Fiscal 2026, with an adjusted EBITDA margin of 16.8% to 17.2%. Analyst firms like William Blair and Goldman Sachs have noted the company’s robust performance despite a challenging economic environment. Korn Ferry’s strategic focus on technology, AI, and organizational performance solutions is expected to drive future growth.
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