On Friday, RBC Capital Markets adjusted its outlook on Hays Plc (LON:HAYS) (HAS:LN) (OTC: HAYPF) shares, reducing the price target to £1.25 from the previous £1.30. Despite the lower target, the firm maintained its Outperform rating on the stock.
The decision came as a response to the challenging trading conditions that Hays faced during the fourth fiscal quarter, along with the management's recent projections for the company's near-term profitability. RBC Capital's analyst cited these factors as the reasons for the revision of the price target, which represents a decrease of approximately 4%.
In the detailed commentary, the firm acknowledged the necessity to adjust their earnings per share (EPS) estimates for Hays for the fiscal years 2024 and 2025. The revisions indicated a 6% reduction for FY24 and a more significant 36% cut for FY25.
Despite the downward adjustments, RBC Capital's stance on Hays remains positive in the long term. The analyst expressed confidence in the company's risk-reward profile, which is still considered attractive despite the short-term challenges and lowered earnings expectations.
Hays Plc, which is traded on the London Stock Exchange as well as over-the-counter, is now set to navigate the upcoming fiscal periods with a more conservative outlook from one of its covering analysts. The company's performance and management strategies in the face of these headwinds will be closely watched by investors and market observers.
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