Recruiter Staffline Group PLC (AIM:STAF) has the headroom for further share buybacks given the strength of its balance sheet.
That, at least, is the conclusion of Liberum, which repeated its 'buy' advice on Wednesday, alongside its 52p a share price target - roughly double the current valuation.
Wheile well placed for expected recovery in the recruitment sector, Staffline's allure to the investment bank is its ability to generate cash.
Liberum estimates its financial 2024 bank balance should be around £9m (excluding leases.
"If Staffline carried out a £5.2m share buyback, this would equate to around 13% of the company’s market capitalisation," Liberum said.
"It would be of similar size to FY 23 and leave it with the same strong net cash position of £3.8m."