Hays: Liberum still a buyer, but cuts target

(CercleFinance.com) - Liberum maintains its "buy" rating on the UK staffing agency stock Hays, although has cut its target price from 185 pence to 160 pence, after the group announced flat net organic fee income in Q1, while the broker and the consensus were expecting it to fall by 1%.


"Further pressure in the UK and Germany, combined with continued investment in growth markets means that we cut our top end of consensus FY20E (to June) EBIT by 6.1%," the broker says.

While acknowledging that the share is trading at a premium relative to its sector, Liberum believes that "this reflects the broad geographic exposure, strong market positions and longer term growth potential".



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