NEW YORK — Citing price and earnings growth starting next year, Kforce (KFRC, Financial) shares jumped a healthy 4% Tuesday after Sidoti upgraded the professional staffing business to "Buy" from "Neutral." Sidoti analyst Marc Riddick talked about the sluggishness in Kforce stock, which dropped a sizeable 15.3% last year. On the flipside, though, it's important to note that the S&P Small Cap 600 and the Russell 2000 gained a superb 9.3% and 12.1%, respectively.
Many of the leading staffing and consulting colleagues also suffered a considerable drop in customer demand according to Riddick, linking the listlessness to macroeconomic events rather than company-related problems. With possible triggers including U.S. interest rate drops and the 2024 election, the company anticipates Kforce's profits to start picking up the pace again next year. "We believe the most likely potential client demand catalyst is increased certainty following interest rate cuts and the U.S. election," Riddick added.
Moreover, based on 16 times its anticipated 2025 EPS of $4.35, Sidoti boosted its price target for Kforce to $71, reflecting a 26% increase from Monday's closing price.
