Market's view on Robert Walters
Published on April 2024
- The current debt level of BRBY is a concern for potential recovery despite holding a positive outlook on Page and RWA.
- Historical performance during rate cut cycles suggests RWA could rebound quicker than analysts predict, influenced by global rate cuts driven by inflation while avoiding recession.
- Predictions for a stock price to potentially rise to £7.00 within 18 months are seen as optimistic.
- Positive sentiment towards building a holding due to a strong balance sheet and global diversification in recruitment, with anticipation of a quick recovery in macroeconomic conditions.
- Robert Walters shares are perceived as undervalued according to an analysis by Liberum.
- Improved performance updates from Robert Walters compared to Hays, with strong net cash position and a beneficial 5% yield, indicating signs of recovery in Asia and Europe.
- A sudden 10% rise in stock price prompts speculation about potential undisclosed news.
- Discussions reflect on past experiences and insights into the recruitment sector’s cyclical nature and its early indications of wider economic trends.
- Considerations on how AI might impact white-collar jobs in the coming years and the significance of director signals in the recruitment sector.
- Holding stocks in the recruitment sector seen as profitable, with a strategy to buy during recessions.
- Current market capital has a substantial cash component, suggesting it is a good time to hold for a potential market turnaround.
- Skepticism expressed over recent stock price increases, suggesting it may be premature optimism without substantial support.
- Concerns raised about potential profit warnings following a recent ambiguous statement from the company.
- A slower start to the year reported in Q1 trading update from Robert Walters plc, with a modest increase in net fee income and slight growth in headcount; solid financial standing with significant net cash, though share price momentum is lacking.