UPDATE: Citigroup Upgrades Kelly Services to Buy
Citigroup raises its rating on Kelly Services (NASDAQ: KELYA) to Buy from Neutral and increases its price target to $19 from $17 on improving staffing data and a pullback in shares.
Citigroup says, "Shares of KELYA pulled back 18% on what we viewed as decent Q4 results and improving core margins (excluding HIRE Act benefit). Following Friday's surprisingly strong temporary staffing data and employment stabilization in manufacturing and light industrial (KELYA's core U.S. segments), we now view our post-Q4 estimate revisions as overly conservative, and we are raising our estimates slightly. As a result of incrementally better outlook, and KELYA's improving core margins, we are also raising our 1-year target price to $19 from $17 (unchanged P/E) and see risk/reward as compelling."
KELYA closed at $15.01 a share on Friday.
