Financial Trading Blog
Stock of the day 07/04/2015 – Robert Walters PLC
The company will be hoping to continue this trend when it announces its Q1 2015 interim management statement on Wednesday.
After struggles between mid-2011 and mid-2013, Robert Walters saw growth from £2.28 to £3.16 in the back half of 2013; however, the company couldn’t capitalise on this momentum 2014, slipping to £3.10 by the end of the year. This loss could have been a lot more severe, but a late in the year rally saw Robert Walter’s stock price rise from £2.73 at the start of December back to the aforementioned £3.10 by the start of 2015. And despite drifting to £3.08 in the first week of the New Year, the stock has seen some big leaps take it to £3.64 at the start of March, its highest price since mid-2007 before the economic crisis crushed the jobs market. Since March the stock has stabilised around to £3.54, a strong performance given its position 4 months ago.
The strength of the UK jobs market, low wages or no low wages, has seen the company more than recover from the stagnation that plagued the company’s market performance during 2014. In fact, it was employment reaching its highest ever rate of 73.3% since ONS records began in 1971 that helped push Robert Walters to its start-of-March highs.
On top of this came impressive full year 2014 results which saw year-on-year annual profits up 80%, with revenue growing from £597.7 million to £679.6 million, and a fourth quarter surge in net fee income of 27%. Analysts are slightly more wary with their estimates for Wednesday’s interim statement, forecasting a 15% rise in fees for the first quarter. Overall, however, analysts remain bullish on Robert Walters, giving the recruitment company a consensus rating of ‘buy’ and an average 12 month target price of £4.10.
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