Update shared on 28 Nov 2025
Analysts have modestly raised their price target for Hays, increasing it by £0.03 to £0.55. They cite updated expectations on sector performance and company outlook as reasons for this adjustment.
Analyst Commentary
Recent research reports reflect mixed sentiment towards Hays, with analysts divided over the company’s outlook and valuation. Updated price targets and recommendations have highlighted both strengths and potential challenges for the staffing firm.
Bullish Takeaways
- Bullish analysts have modestly raised price targets, reflecting an improved view of sector dynamics and a gradual recovery in Hays' market position.
- Expectations for operational execution and product offering improvements support optimism on medium-term growth prospects.
- Recent target upgrades indicate confidence in Hays' ability to navigate current headwinds and potentially capture incremental market share as conditions stabilize.
Bearish Takeaways
- Some bearish analysts emphasize that consensus expectations for Hays may remain too optimistic, particularly in a still-volatile European staffing market.
- Price target reductions reflect tempered earnings forecasts because of macroeconomic uncertainty and ongoing sector pressures.
- Revised ratings show caution over growth execution, with concerns focused on Hays' ability to deliver sustained profitability improvements in the near term.
What's in the News
- Morgan Stanley raised its price target for Hays to 55 GBp from 52 GBp and is maintaining an Underweight rating (Morgan Stanley).
- Hays PLC CEO Dirk Hahn is on medical leave as he recovers from recent surgery. Group Chair Michael Findlay will serve as Executive Chair in his absence, and Hahn is expected to return early in the new year.
- Hays announced a share repurchase program to buy back 2,000,000 ordinary shares for £2 million. The shares will be held in treasury for employee plans, and the program runs until December 31, 2025.
Valuation Changes
- Fair Value remains unchanged at £0.75 per share, reflecting stability in analysts’ intrinsic valuation assessment.
- Discount Rate has risen slightly, increasing from 7.97% to 8.01%. This implies a marginally higher risk premium on future cash flows.
- Revenue Growth forecast is essentially unchanged and remains steady at approximately 2.47%.
- Net Profit Margin remains stable at 1.30%, with no material revision to projected profitability.
- Future P/E ratio has edged up marginally from 16.40x to 16.41x, indicating minimal change in expected market valuation multiples.
Disclaimer
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