Hays plc: Cyclical Weakness, Regional Underperformance and Governance Overhang Underpin Maintained Sell Rating

Morgan Stanley analyst Remi Grenu has maintained their bearish stance on HAS stock, giving a Sell rating on February 28.

Remi Grenu has given his Sell rating due to a combination of factors linked to Hays plc’s operational and market backdrop. Trading at the start of the year was only “decent,” with March – the most critical month – still highly uncertain, making near‑term net fee trends hard to predict, while Germany’s key temp segment remains soft and hours worked subdued in several core sectors.

At the same time, France has been loss‑making and, despite cost‑cutting measures and a target to return to breakeven by 4Q, execution risk remains elevated alongside the need to deliver a sizable profit improvement in 2H just to meet consensus. Although Hays is progressing on structural cost savings, investing in proprietary digital platforms, and reshaping its geographic footprint, these positives are not yet sufficient to offset cyclical weakness, regional underperformance, and governance overhang from the CEO’s decision to step down, leading Grenu to maintain a cautious, Sell stance on the shares.

In another report released on February 28, TipRanks – PerPlexity also downgraded the stock to a Sell with a p37.00 price target.