Update shared on 08 Nov 2025
Fair value Decreased 7.69%Kelly Services Price Target Slightly Lowered Amid Analyst Optimism
Analysts have modestly reduced their fair value target for Kelly Services from $26 to $24 per share. This adjustment reflects a blend of slower projected revenue growth, improved margin expectations, and continued conviction in the company’s strategic transformation and discount valuation.
Analyst Commentary
Recent commentary from the analyst community highlights both strengths and areas of caution regarding Kelly Services' outlook and valuation. The following summarizes key takeaways from their perspectives.
Bullish Takeaways- Bullish analysts note that Kelly Services is currently valued at a substantial discount to industry peers, presenting what they view as a compelling investment opportunity for those seeking undervalued stocks.
- The ongoing strategic transformation has positioned the company as a leading provider of faster-growing and higher-margin specialty staffing solutions, particularly in North America.
- Management initiatives are expected to drive improved margins and sustained revenue growth, which could enhance long-term shareholder value.
- Analysts remain confident in the company’s ability to execute its transformation plan and capture greater market share within specialized workforce solutions.
- Some caution that, despite strategic improvements, slower projected revenue growth could limit near-term upside potential.
- There are ongoing concerns about Kelly Services’ ability to fully close the valuation gap with peers if margin expectations are not met.
- Analysts note that continued execution risk remains as the company shifts focus to specialized markets, which may face increased competition or changing demand dynamics.
What's in the News
- Kelly Services issued new earnings guidance for the fourth quarter of 2025, projecting a total year-over-year revenue decline of 12% to 14% (Key Developments).
- Approximately 8% of this projected revenue decline is attributed to reduced demand for federal contractors and impacts from discrete large customers (Key Developments).
- The company noted an underlying revenue decline of 4% to 6%, citing strong growth in the fourth quarter of last year as well as a modest impact from the government shutdown (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Lowered from $26 to $24 per share, reflecting a modest downward revision in fair value assessment.
- Discount Rate: Increased slightly from 7.5% to 8.1%, indicating a higher perceived risk or required return by analysts.
- Revenue Growth: Reduced significantly from approximately 1.5% to 0.6%, highlighting a more cautious outlook for future sales expansion.
- Net Profit Margin: Increased notably from 7.4% to 11.5%, suggesting improved profitability expectations despite softer growth.
- Future P/E: Decreased from 3.2x to 2.0x, pointing to a lower valuation multiple on future earnings than previously projected.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.