ANALYST VIEWS: HOW IS HAYS COPING WITH THE CHANGES IN THE JOBS MARKET?
DAVID O’BRIEN | ALTIUM SECURITIES
“The downturn in the public sector continues to offset improvements within the private sector. Cash flow remains strong, with the level of nebt debt ahead of our estimates (although our forecast included the recent OFT fine). We have not changed our estimates, target price or ‘hold’ recommendation.”
CAROLINE DE LA SOUJEOLE | SEYMOUR PIERCE
“The return to year-on-year growth is clearly a good sign. However growth rates achieved are slightly disappointing compared to that reported by peers such as Robert Walters on Wednesday. From a valuation perspective, there is better value in small cap stocks such as Harvey Nash. ‘Hold.’”
IAN JERMIN | MERCHANT JOHN EAST SECURITIES
“Hays has taken longer to exploit the move out of recessionary conditions due to its focus on temp business and as such, together with its weaker balance sheet, should be selling at a discount to Page and Walters at this stage. But with visibility and confidence still very fragile, Hays’ star could yet rise.”