Hays plc Faces Uncertainty Amid Tariffs, Restructuring, and Market Pressures, Leading to Hold Rating

Morgan Stanley analyst Remi Grenu maintained a Hold rating on Hays plc (HAS – Research Report) today and set a price target of p66.00.

Remi Grenu has given his Hold rating due to a combination of factors affecting Hays plc. The company is currently facing challenges from recently announced tariffs, with management indicating that the recovery might take longer than expected, potentially impacting the fiscal year 2026. This uncertainty makes it difficult to predict the company’s future performance.
Additionally, while there has been some stability in trading over the past six months, specific segments such as permanent positions in EMEA and temporary roles in Germany have experienced pressure. In the UK, Hays has taken significant cost-cutting measures to address productivity issues, including a workforce reduction. Although there has been some improvement, such as a return to operating profit in March, the overall outlook remains uncertain. Furthermore, the company is undergoing restructuring in France, which involves significant one-off costs. Despite positive performance in the enterprise client segment and productivity gains, the uncertain market conditions and restructuring efforts contribute to the Hold rating.