Recruiter PageGroup PLC (LSE:PAGE) has seen its earnings per share (EPS) estimates for 2024 and 2025 revised downward by RBC Capital Markets, with then broker citing an increase in the company's effective tax rate as the primary reason.
EPS estimates were lowered by approximately 7% and 5% for 2024 and 2025, respectively.
Despite this adjustment, RBC has kept its price target for PageGroup unchanged at 510p, suggesting a potential total shareholder return (TSR) of over 30% within the next 12 months.
“We continue to see PAGE's strong balance sheet, empirically resilient (free cash flow) generation and commitment to return, essentially, the entire market cap to shareholders by the end of the decade as compelling for patient investors,” said analysts.
Pagegroup shares were given an outperform rating with a 510p price target against a 397p publication price.