On Friday, RBC Capital maintained its Outperform rating on Hays Plc (LON:HAYS) (HAS:LN) (OTC: HAYPF) stock with a steady price target of GBP1.25. Following the release of the company's financial results for fiscal year 2024, the firm made slight revisions to its earnings per share (EPS) estimates for the upcoming years.
The adjustments reflect a modest decline of approximately 3% for fiscal year 2025 and about 1% for fiscal year 2026, primarily attributed to an anticipated increase in the effective tax rate. Additionally, RBC Capital introduced its estimates for fiscal year 2027 in the same report.
The company's performance for the fiscal year 2024 aligned with the expectations set out in the early-July trading update. Despite the minor changes to the EPS forecasts, RBC Capital's stance on Hays remains positive, citing the firm's potential for a value-driven cyclical recovery. The analyst's commentary underscores the belief in Hays' trajectory toward enhanced profitability over the cycle.
The unchanged price target of GBP1.25 suggests that RBC Capital continues to view Hays as a stock with attractive investment potential. The firm's analysis points to a favorable outlook for the company, emphasizing the prospects for improved profitability in the coming years.
Investors following Hays Plc will note that the company's strategic direction and financial health remain under favorable consideration by RBC Capital. The firm's reiterated Outperform rating indicates confidence in Hays' market position and its ability to capitalize on economic cycles for future growth.
The financial community will continue to monitor Hays Plc's progress as it navigates the fiscal years ahead. RBC Capital's assessment provides a snapshot of the company's current valuation and anticipates positive developments in its profitability metrics.
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