Credit Suisse has upgraded its recommendation on specialist recruitment group Hays (LON:HAS) to 'neutral' from 'underperform', despite acknowledging that the UK market will be challenging through 2017 but adding that this should be offset by FX tailwinds and like for like profit growth in its other operations.
Analysts have upped their target price to 125 pence a share (from 100 pence) to reflect higher near term forecasts and a lower cost of equity.
Earnings per share estimates for fiscal years 2017 and 2018 have been raised by 3.8 per cent and 2.2% per cent, respectively.
Meanwhile, Numis has downgraded its investment rating on the stock to 'hold' from 'add' but upped its target to 130 pence from 110 pence.
The broker said: "Trading trends and the investment strategy remain unchanged, but in the short term we believe UK market uncertainty is likely to dominate sentiment.
"Following recent outperformance we believe the shares are up with events."
At 1:22pm: (LON:HAS) Hays PLC share price was -0.55p at 129.55p