Hays PLC (LSE:HAS) remains an outperform with the broker Credit Suisse, which raised its earnings per share forecast by 7% for the year following a strong interim performance.
Profits quadrupled in the first half of the year, boosted by rising wages, an increase in temp fees and higher demand across its network in the UK and Germany.
Credit Suisse adds that geopolitical uncertainty and inflation could threaten the “sustainability of corporate demand,” but believes Hays should be immune to these pressures.
Hays will be releasing a third-quarter trading update in April, and the broker adds there are several upside and downside risks that may be seen, including stronger or weaker macro conditions and companies turning to internal recruitment.
The target price has been dropped from 220p to 200p, largely due to geopolitical uncertainty.