The analyst price target for Heidrick & Struggles International has been raised to $59.00 per share. This reflects increased confidence among analysts in the company's acquisition deal and positive sector demand trends.

Analyst Commentary

Recent analyst notes regarding Heidrick & Struggles International highlight both optimism around the acquisition deal and areas of caution. The company's pending agreement to be acquired at $59 per share in cash has drawn a range of updates to target prices and ratings.

• Bullish analysts have responded to the acquisition agreement with increased price targets. They see it as a positive endorsement of the company's valuation and positioning.
• The proposed acquisition price signals robust underlying demand for executive search services and suggests sector momentum remains healthy.
• Recent earnings and revenue outlooks have been described as resilient, supporting an improved estimate for future performance and reinforcing expectations for continued growth.
• The transaction is viewed as an encouraging signal not only for Heidrick & Struggles, but also as a positive indicator for peers in the sector.

• Bearish analysts have tempered their ratings despite the higher target price, citing that valuation upside is likely capped by the agreed acquisition price.
• Uncertainty around the completion of the deal, while considered a low risk, remains a factor for some and has led to more neutral positioning.
• Analysts caution that once the transaction closes, further growth prospects for public shareholders may be limited given the privatization.
• There is acknowledgment that, with the offer price mostly reflecting current fair value, near-term execution risk has diminished. However, long-term competitive challenges remain.

What's in the News

• A consortium led by Advent International and Corvex Management has entered into a definitive agreement to acquire Heidrick & Struggles International for $1.3 billion in cash at $59 per share. Upon closing, the company will go private and its stock will no longer be listed on Nasdaq. Leadership will remain unchanged following the transaction. CEO Tom Monahan and President Tom Murray will continue in their roles (Key Developments).
• The definitive merger agreement was signed on October 5, 2025. The merger is expected to close by the first quarter of 2026, pending shareholder and regulatory approval, including a required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (Key Developments).
• The Heidrick Board of Directors has unanimously approved the transaction and scheduled a Special/Extraordinary Shareholders Meeting for December 5, 2025 (Key Developments).
• In connection with the merger, the Board adopted an amendment to the company’s bylaws. The amendment establishes that specified legal actions involving the company are to be brought in the Delaware Court of Chancery, and federal claims under the Securities Act are to be brought in federal district courts (Key Developments).
• Should the merger not close by July 5, 2026, or under certain other stipulated conditions, the agreement allows for termination and requires Heidrick & Struggles International to pay a $38.9 million termination fee in specific scenarios (Key Developments).

Valuation Changes

• Fair Value remains unchanged at $59.00 per share following the acquisition agreement.
• Discount Rate has decreased marginally, moving from 7.12% to 7.11%.
• Revenue Growth expectations have been revised down, from 4.23% to 3.87%.
• Net Profit Margin has increased moderately, rising from 7.33% to 7.86%.
• Future Price/Earnings (P/E) Ratio has fallen from 15.88x to 14.40x as a result of updated future projections.