SThree PLC (LSE:STEM) faced a downgrade from Liberum on Thursday as macroeconomic concerns cast a shadow over the specialist staffing firm’s "robust" full-year results.
Pointing to lacking signs of improvement among SThree’s key markets, Liberum cut the FTSE 250 firm’s share price target from 655p to 610p.
“Pricing, salary levels and contract extensions are robust, but new business wins remain under pressure,” the investment bank said.
This echoed sentiment from SThree boss Timo Lehne, who said: “As we enter the start of the new financial year, we haven't yet seen an easing of the macroeconomic environment, which continues to drive soft trading conditions.”
SThree reported a 4% drop in full-year net fees to £418.8 million on Thursday, which Liberum said was as expected given wider pressures on spending.
“We understand that trends in terms of pricing, wage inflation and contract extensions remain positive,” Liberum continued.
“However, new business wins remain under pressure and have been volatile on a monthly basis.”
Shares climbed 1.2% to 422p, with Liberum opting to reiterate SThree’s ‘buy’ rating.