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Goldman Sachs Reiterates Buy Rating on Korn/Ferry (KFY)

December 5, 2024 9:40 AM

Goldman Sachs analyst George K. Tong reiterated a Buy rating and $84.00 price target on Korn/Ferry (NYSE: KFY).

The analyst comments "We expect investors to have a mixed reaction to Korn Ferry’s F2Q 2025 earnings release, with EPS and EBITDA margins coming in-line to slightly ahead of consensus, balanced by a modest shortfall in revenue and a guide for F3Q that comes slightly below the Street at the midpoint for revenue and EPS. Total fee revenue decreased 5% y/y on a CC basis, widening from 2% decline in F1Q, due to an uncertain macro environment. New business excluding RPO decreased 1% y/y in F2Q, improved from the 2% decline in F1Q on a CC basis, pointing to early signs of revenue stabilization in the cyclically sensitive talent acquisition businesses, while EBITDA margins expanded meaningfully on a y/y basis and exceeded management’s guidance for the quarter. On the earnings call, we expect investors to focus on new business trends across KFY’s executive search, consulting, digital, professional search & interim and RPO businesses, the overall macro outlook and selling environment, traction with cross-selling, and cost take-out strategies in the current uncertain economic landscape."

For an analyst ratings summary and ratings history on Korn/Ferry click here. For more ratings news on Korn/Ferry click here.

Shares of Korn/Ferry closed at $78.65 yesterday.

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