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Investing.com - Truist Securities lowered its price target on Kforce .com (NYSE:KFRC) to $46.00 from $50.00 on Tuesday, while maintaining a Hold rating on the staffing company’s stock. According to InvestingPro data, the stock is currently trading below its Fair Value, with a P/E ratio of 15.7x and maintaining strong financial health metrics.
The price target reduction follows Kforce’s quarterly earnings report, which showed revenue and EPS results in line with consensus estimates. However, the company’s third-quarter guidance came in below market expectations. Despite these challenges, InvestingPro analysis reveals that management has been actively buying back shares, and the company maintains a solid dividend track record with 14 consecutive years of payments.
The guidance implies a 2% quarter-over-quarter revenue decline, compared to a 1% sequential drop in the same period last year, indicating continued weakness in the staffing market.
Truist Securities noted that client demand has yet to inflect positively, with customers remaining cautious as "an inflection in the staffing cycle is yet to occur," leading the firm to lower its estimates.
While the investment firm acknowledged Kforce’s work helping clients improve internal AI utilization, it continues to view automation as a risk factor for the temporary staffing industry.
In other recent news, Kforce Inc. reported its financial results for the second quarter of 2025, meeting analyst expectations. The company achieved an earnings per share (EPS) of $0.59 and generated revenue of $334.3 million. Despite a 6.2% decline in revenue compared to the previous year, Kforce’s performance aligns with its forecast, suggesting stability amidst challenging market conditions. Analysts had anticipated these results, and the company delivered as expected. There were no significant changes in analyst ratings or recommendations following the earnings release. These developments come as Kforce continues to navigate an uncertain economic landscape. Investors and stakeholders may find reassurance in the company’s ability to meet its financial targets.
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