Hays: decline in title after Panmure Liberum rating

(CercleFinance.com) – The stock is down almost 1% after the downgrade of Panmure Liberum’s opinion.

The analyst downgrades his advice on Hays from ‘buy’ to ‘hold’, with the price target reduced from 105 pence to 90 pence, in the wake of a 14% reduction in its estimated EBIT for the group’s 2025 financial year British human resources services.

The broker highlights that Hays’ placement volumes declined 16% in 2024 compared to the pre-pandemic peak of 2019, and that with average cost per employee up 11%, EBIT fell 58% over the period. same period.

‘Despite current cost-cutting initiatives, inflationary pressures on a cost base of around £1 billion will make conversion rate targets difficult to achieve, even if volumes recover,’ he warns.

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