Gold prices bounce off 3-week lows; demand likely longer term
Investing.com -- Goldman Sachs has revised its rating for Hays (LON:HAYS), upgrading the stock to “equal-weight,” in a note dated Tuesday.
This revision by Goldman Sachs is influenced by their analysis that Hays's valuation has reached a more balanced level, particularly in comparison to its competitors in the staffing sector.
The upgrade from Goldman Sachs indicates a shift in perspective on Hays's stock, suggesting that its current market price more accurately reflects its intrinsic value.
The brokerage perceives limited downside risk for the stock in the foreseeable future, which has contributed to the revision of its rating.
In their broader analysis of the staffing sector, Goldman Sachs also provided insights into Hays's positioning relative to other key players.
Randstad (AS:RAND) remains Goldman Sachs' preferred provider over Adecco (SIX:ADEN), indicating an understanding of the competitive landscape. Compared with these benchmarks, Hays has been rated as “equal-weight,” reflecting a neutral outlook for its performance.
Goldman Sachs's report also delves into the factors influencing the broader staffing industry, with a focus on the implications of new tariffs.
The analysts suggest that these tariffs, especially if maintained over an extended period, are likely to exert significant pressure on the staffing sector.
The sectors most vulnerable to these tariffs, such as manufacturing, automotive, and logistics, also represent key client segments for staffing companies like Adecco and Randstad.
This exposure creates an environment of heightened uncertainty, potentially leading clients to reconsider their hiring strategies.
In light of these challenges, Goldman Sachs has adjusted its forecasts to reflect a more cautious outlook.
The brokerage has revised its organic growth forecasts for Adecco and Randstad, anticipating a more prolonged period of difficulty in 2025.
These revisions also consider the potential impact of trade policy uncertainty on the staffing sector's short-term prospects.