Kelly Services: Navigating Challenges with Strategic Resilience and Growth Potential

Barrington analyst Kevin Steinke has maintained their bullish stance on KELYA stock, giving a Buy rating yesterday.

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Kevin Steinke has given his Buy rating due to a combination of factors that reflect both current challenges and future potential for Kelly Services. Despite the recent underperformance in Q3/25, largely attributed to macroeconomic pressures and reduced demand from key clients, Steinke sees potential in the company’s ability to navigate these hurdles. The company’s revenue was impacted by economic uncertainties and policy shifts, but excluding these discrete impacts, the decline was less severe than the broader market trends, indicating resilience in certain segments.
Moreover, the Education segment demonstrated growth, albeit slower than anticipated, due to external factors such as delayed federal funding. However, the strong rationale for outsourcing K-12 substitute teacher staffing to Kelly, along with management’s expectation of future contract closures, supports a positive outlook. Steinke’s revised 12-month price target of $16 reflects confidence in Kelly Services’ strategic positioning and potential for recovery and growth, justifying the Buy rating despite current market challenges.

In another report released yesterday, Noble Financial also maintained a Buy rating on the stock with a $17.00 price target.