Update shared on 11 Nov 2025
Analysts have increased their price target for Resources Connection by $0.13 to $7.00 per share, citing strengthened profit margin projections and positive recent coverage.
Analyst Commentary
Analysts have recently initiated coverage of Resources Connection, providing insight into both the company's potential and the risks that may impact its future performance.
Bullish Takeaways
- Bullish analysts highlight robust profit margin projections, pointing to improvements in operational efficiency and cost management.
- Recent positive coverage and the new Buy rating reflect increased confidence in the company's market positioning and long-term growth prospects.
- The $7 price target indicates expectations for share appreciation based on favorable valuation relative to peers.
- A strengthened outlook on revenue generation is supported by an uptick in demand for the company's consulting and staffing services.
Bearish Takeaways
- Some analysts remain cautious about near-term execution risks, particularly in adapting to evolving client needs and macroeconomic uncertainty.
- Questions persist regarding the sustainability of recent profit margin gains over the long term.
- Competitive pressures in the professional services sector could challenge the company's ability to maintain growth momentum.
What's in the News
- Resources Connection announced a leadership change and appointed Roger Carlile as CEO effective November 3, 2025. Former CEO Kate Duchene will transition to Executive Advisor through January 2026 to assist with continuity of leadership (Key Developments).
- The company provided earnings guidance for the second quarter of 2026, projecting revenue between $115 million and $120 million (Key Developments).
- RGP® introduced rIQ™, a proprietary AI accelerator platform built on ServiceNow to enhance generative AI-powered service solutions. The platform offers integration across more than 30 enterprise systems and features such as decision fatigue reduction, unstructured data mastery, intelligent escalation management, and continuous learning (Key Developments).
- Resources Connection completed a major share repurchase, having bought back over 8.1 million shares for $120.75 million under its 2015 buyback program (Key Developments).
Valuation Changes
- Fair Value has remained unchanged at $6.88 per share.
- Discount Rate has risen slightly, increasing from 7.07% to 7.22%.
- Revenue Growth projection is unchanged, staying at minus 0.83%.
- Net Profit Margin has risen slightly, moving from 7.21% to 7.23%.
- Future P/E ratio has increased marginally, from 7.63x to 7.64x.
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.