Update shared on 13 Nov 2025
Hays’ analyst price target saw a modest increase to 55 GBp, up from 52 GBp. Analysts cite improved profit margin assumptions and revised market expectations.
Analyst Commentary
Recent analyst activity regarding Hays has reflected a shifting sentiment in response to the company's updated performance and outlook. The range of price target changes and rating adjustments highlights both the areas of strength and the ongoing challenges facing the business.
Bullish Takeaways- Bullish analysts have increased their price targets in light of improved profit margin assumptions, signaling confidence in Hays' ability to effectively manage costs and drive profitability.
- There remains a belief that Hays can outperform its peers given its established market position in the staffing sector.
- Support for an Outperform rating suggests prospects for long-term growth remain intact. The company is seen as well-positioned to benefit from recovery trends in the job market.
- Incremental revisions upward indicate some optimism around management's execution and the company's adaptability to evolving market conditions.
- Bearish analysts have either downgraded the stock or lowered price targets, citing concerns that current market expectations may be too optimistic given sector headwinds.
- Some rating adjustments reflect concerns about Hays' near-term growth potential, with expectations for more moderate performance versus prior forecasts.
- Maintaining a cautious view on the shares is linked to potential volatility in staffing demand and macroeconomic uncertainties impacting earnings visibility.
- There is a consensus among bearish voices that valuation risk persists if execution does not improve in line with revised projections.
What's in the News
- Morgan Stanley analyst Remi Grenu raised Hays' price target to 55 GBp from 52 GBp and maintained an Underweight rating (Morgan Stanley).
- Hays announced that CEO Dirk Hahn is on medical leave following surgery. Group Chair Michael Findlay will serve as Executive Chair until his return early next year (Company Statement).
- Hays launched a share repurchase program to buy back 2,000,000 ordinary shares for £2 million. The shares will be held in treasury for employee share plans through December 31, 2025 (Company Statement).
Valuation Changes
- Fair Value: Unchanged at 0.75, indicating stable valuation estimates.
- Discount Rate: Increased modestly from 7.70 percent to 7.97 percent, reflecting a slightly higher risk or required return assumption.
- Revenue Growth: Remains essentially unchanged, staying near 2.47 percent.
- Net Profit Margin: Rose from 1.07 percent to 1.30 percent, suggesting improved profitability assumptions.
- Future P/E: Decreased from 19.76x to 16.40x, indicating a more attractive earnings multiple based on revised forecasts.
Disclaimer
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