Hays PLC (LSE:HAS) drew an upgrade from Panmure Liberum, as analysts argued that the recruiter's strategic shift toward rationalisation presents an asymmetric risk profile skewed to the upside on earnings forecasts.
The shares climbed 5.40% to 77.05p as the broker moved its stance from 'hold' to 'buy' and raised its target price from 35p to 100p.
At the heart of the update is a change in corporate strategy, shifting focus away from widening geographic growth and towards operational efficiency.
That pivot involves exiting 13 global markets, which collectively generated £85 million in net fee income but remained broadly break-even.
Those market exits sit alongside a broader target to remove £165 million in structural costs, representing 15% of the peak expense base recorded in the 2023 financial year.
Based on these reductions, analysts estimate that operating profit for the 2027 financial year could surpass current consensus estimates by nearly 50% if the business successfully executes its plan.
On the same note, Panmure Liberum explicitly stated that the stock remains cheap on an enterprise value-to-net fee income basis relative to its long-term history.
Analysts outlined a scenario in which any continued pressure on net fee income could be offset in the short term by these aggressive cost actions, helping management maintain its earnings guidance.
Focus is now turning toward execution risks, with the next major operational catalyst being the first-quarter trading update scheduled for 12 October 2026.
