Barrington analyst Gary Prestopino maintained a Buy rating on DHI Group (DHX – Research Report) today and set a price target of $7.00.
Gary Prestopino has given his Buy rating due to a combination of factors following the evaluation of DHI Group’s financial performance and market position. Despite a decrease in total revenue, DHI Group reported an increase in adjusted EBITDA, which surpassed both the analyst’s and consensus expectations for the first quarter of 2024. The company’s ability to grow its adjusted EBITDA amidst a challenging market environment, alongside maintaining guidance for the year, demonstrates resilience and effective cost management. Prestopino also recognizes the strategic restructuring initiatives that DHI Group undertook in the previous year, leading to reduced operating expenses and an improved margin, which are indicative of a strong operational foundation and potential for enhanced profitability.
Additionally, Prestopino’s recommendation takes into account the company’s adaptation to market demands, as evidenced by the introduction of comprehensive subscription packages which have shown to increase the average contract value. The improvement in transactional bookings for both Dice and ClearanceJobs platforms indicates growing demand for the company’s services. Furthermore, the high renewal and retention rates for these platforms suggest a strong and loyal customer base. With the tech job market showing signs of recovery and DHI Group’s focus on in-demand AI-skilled professionals, Prestopino sees potential for increased market share and revenue growth, which underpins his positive outlook on the stock.
Prestopino covers the Consumer Cyclical sector, focusing on stocks such as LKQ, Commercial Vehicle Group, and Dorman Products. According to TipRanks, Prestopino has an average return of 27.6% and a 58.62% success rate on recommended stocks.
In another report released on May 9, Lake Street also reiterated a Buy rating on the stock with a $3.50 price target.
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DHI Group (DHX) Company Description:
DHI Group, Inc. engages in the provision data, insights and employment connections through services for technology professionals including technology, security clearance and financial services. It offers its services under the following brands: Dice, Dice Europe, ClearanceJobs, Targeted Job Fairs, eFinancialCareers, Rigzone, Hcareers, and BioSpace. The company was founded on June 28, 2005 and is headquartered in New York, NY.
