Goldman Sachs analyst George Tong has reiterated their bearish stance on RHI stock, giving a Sell rating on April 26.
George Tong has given his Sell rating due to a combination of factors affecting Robert Half International Inc., most notably the challenging external environment for temporary staffing. The first quarter results revealed a significant year-over-year decline in revenue that not only fell short of expectations but also indicated considerable negative operating leverage. The report points out that Robert Half’s clients are cautious about hiring amidst broader macroeconomic uncertainty, leading to lower demand for temporary staffing as companies prioritize retaining their full-time staff.
This cautious stance by clients is compounded by a broader hesitance in the face of geopolitical uncertainties and a lack of clear business conditions, resulting in labor hoarding which limits the budget available for temporary positions. Although there was a slight stabilization in weekly revenue towards the end of the quarter, no substantial positive shift in trends was observed. Tong’s outlook for Robert Half is pessimistic due to these ongoing issues, alongside the potential for further share price downside driven by persistent revenue declines, high decremental margins, and a continuous cycle of negative estimate revisions, justifying the Sell recommendation.
According to TipRanks, Tong is a 4-star analyst with an average return of 6.0% and a 58.93% success rate. Tong covers the Industrials sector, focusing on stocks such as Equifax, ManpowerGroup, and BrightView Holdings.
In another report released on April 26, Barclays also maintained a Sell rating on the stock with a $70.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Robert Half (RHI) Company Description:
Robert Half International, Inc. engages in the provision of staffing and risk consulting services. It operates through the following segments: Temporary and Consultant Staffing, Permanent Placement Staffing and Risk Consulting & Internal Audit Services. The Temporary and Consultant Staffing segment offers staffing in the accounting and finance, administrative and office, information technology, legal, advertising, marketing, and web design fields. The Permanent Placement Staffing segment provides full-time personnel in the accounting, finance, administrative & office and information technology fields. The Risk Consulting and Internal Audit Services segment comprises business and technology risk consulting and internal audit services. The company was founded by Robert Half in 1948 and is headquartered in Menlo Park, CA.
