Staffline Group PLC (AIM:STAF) shares jumped 15% on Friday after the recruitment and training group announced its largest ever contract, prompting Peel Hunt to raise its price target and earnings forecasts.
The company has secured a major deal with logistics firm Culina, estimated to be worth around £300 million over three years.
The agreement will be rolled out in the second and third quarters of 2025, with upfront implementation costs expected to fall in the current financial year.
Panmure Liberum said the contract confirms Staffline's growing market share and strong positioning in logistics recruitment.
The broker upgraded its earnings forecasts by 12% for 2025, 46% for 2026 and 41% for 2027, citing the scale of the win.
The price target was raised from 52p to 60p, with Staffline now trading at a projected price-to-earnings ratio of 7.2 times for 2025, a level the broker said remains too low given the company’s growth potential.
The shares advanced to 31.41p, up 4.21p.