HireQuest’s Resilience and Growth Potential: A Buy Recommendation Amidst Market Challenges
HireQuest, an Industrials sector company, received a Buy recommendation from analyst Kevin Steinke of Barrington, with a price target of $13.00. Despite market challenges, HireQuest's Q3/25 results exceeded expectations, showcasing resilience and effective management. Key factors include strong franchise royalty fees and total revenue, signs of demand stabilization in its HQ Direct and Snelling brands, and better-than-expected adjusted EBITDA. Although the executive search segment declined, recent trends suggest a potential market recovery, positioning HireQuest for future growth as revenue increases.
HireQuest, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Kevin Steinke from Barrington maintained a Buy rating on the stock and has a $13.00 price target.
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Kevin Steinke has given his Buy rating due to a combination of factors that indicate potential for future growth and stability in HireQuest’s operations. Despite facing a challenging market environment, HireQuest’s Q3/25 results surpassed expectations, with franchise royalty fees and total revenue both exceeding estimates. This performance suggests resilience and effective management amidst economic uncertainties.
Additionally, there are signs of demand stabilization, particularly within the company’s HQ Direct daily labor offering and Snelling commercial staffing brand, which showed sequential sales growth. Although the executive search and permanent placement segment experienced a significant decline, recent trends indicate a potential bottoming out of the market. Furthermore, HireQuest’s adjusted EBITDA was better than anticipated, and the company has managed to maintain stable SG&A expenses, positioning it well for operating leverage when revenue growth resumes.
