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Hays: share price down after Panmure Liberum downgrade

(CercleFinance.com) - Hays shares are down by almost 1% after Panmure Liberum downgraded their rating.


The analyst downgraded his recommendation on Hays from 'buy' to 'hold', with a price target reduced from 105 to 90 pence, in the wake of a 14% reduction in the British human resources services group's estimated EBIT for fiscal 2025.

The broker points out that Hays' placement volumes are down 16% in 2024 from the pre-pandemic peak in 2019, and with average cost per employee up 11%, EBIT is down 58% over the same period.

'Despite current cost-cutting initiatives, inflationary pressures on a cost base of around £1 billion will make conversion rate targets difficult to achieve, even if volumes recover', it warns.

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