Analyst Gary Prestopino of Barrington maintained a Buy rating on DHI Group (DHX – Research Report), retaining the price target of $11.50.
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Gary Prestopino has given his Buy rating due to a combination of factors that highlight DHI Group’s strong market position and growth potential. The company is a leading provider of AI-powered recruitment tools, offering specialized marketplaces under the Dice and ClearanceJobs brands, which cater to highly skilled technologists. This positions DHI uniquely in the market, supported by proprietary search algorithms and a vast database of skilled professionals.
Furthermore, DHI’s business model is characterized by a high percentage of recurring revenue, providing stability and predictability in financial performance. The recent transparency in segment EBITDA reporting enhances visibility into the individual performance of its brands. Additionally, the large addressable market and the gradual return of tech hiring to normal levels present significant growth opportunities. The company’s strategic cost reductions have improved operating leverage, and the stock is considered undervalued based on a sum-of-the-parts analysis, suggesting a potential upside.
Prestopino covers the Consumer Cyclical sector, focusing on stocks such as Liquidity Services, ACV Auctions, and Commercial Vehicle Group. According to TipRanks, Prestopino has an average return of 14.5% and a 53.80% success rate on recommended stocks.