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Robert Half Upgraded to Buy Amid Optimism for Business-Friendly Policies

Robert Half Upgraded to Buy Amid Optimism for Business-Friendly Policies Dec. 13, 2024, 8 a.m., readers: 6

Robert Half International (NYSE:RHI) received an upgrade from Truist Securities analysts, moving from Hold to Buy with a raised price target of $90, up from $62. The upgrade reflected growing optimism about favorable economic and business conditions that could benefit the staffing firm. The analysts highlighted several key factors driving the improved outlook. The potential for a pro-business environment under a second Trump administration, characterized by lower taxes, reduced regulation, and smaller government, was expected to bolster small- and medium-sized business (SMB) sentiment. This could lead to increased hiring and overall optimism in the sector, similar to trends observed during Trump’s first term. Additionally, further interest rate cuts, moderating inflation, and a potential surge in mergers and acquisitions were seen as tailwinds for Robert Half. The company’s Protiviti consulting arm was particularly well-positioned to capitalize on an uptick in M&A; activity, adding to its growth potential. The analysts also noted that Robert Half shares appeared to have stabilized, with poor sell-side sentiment presenting a contrarian opportunity for investors. Concerns about artificial intelligence disrupting the staffing industry were described as overstated, further supporting the upgrade. With these favorable conditions aligning, Robert Half is poised to benefit from an improving economic landscape, making it an attractive option for investors seeking exposure to the staffing and consulting sector.

About NYSE: RHI

R obert Half International Inc. provides staffing and risk consulting services in North America, South America, Europe, Asia, and Australia. The company operates through three segments: Temporary and Consultant Staffing, Permanent Placement Staffing, and Risk Consulting and Internal Audit Services.

Price: 73.75
Market cap: 7.6 billion USD
Eps: 2.75
P/e ratio: 26.82
Focus Analysis On: RHI