PageGroup PLC (LON:PAGE) is on the up suggests Canadian broker RBC, which is increasingly bullish following the recent second-quarter update.
“Strong Q2 fee performance, ongoing positive recruitment survey results, cost control, productivity improvements and improving tax efficiency,” are the plusses, it said.
As a result, it has raised its 2021 EPS forecast by what it described as a ‘huge’ 53%.
“The shares now look too cheap given the pace of profit and cash recovery and we believe investors will see more than 20% of market cap returned to them in the next 3 years.”
The price target is now 700p, against 599p, up 0.7% today with an 'outperform' rating.
Hays PLC (LON:HAS) has underperformed PageGroup adds RBC and this presents an opportunity.
“We believe the forthcoming Q4 update is likely to lead to upgrades to FY22 estimates,” said RBC, which raises its price target to 195p from 150p with the investment rating also now ‘outperform’.
Shares rose to 166.6p.