Kforce: Buy Rating Reiterated on Early Growth Rebound and Margin Upside, Price Target Maintained at $32

Analyst Trevor Romeo from William Blair maintained a Buy rating on Kforce and keeping the price target at $32.00.

Trevor Romeo has given his Buy rating due to a combination of factors, starting with Kforce’s stronger-than-expected quarterly performance and guidance that point to an earlier-than-anticipated return to year-over-year growth. He views the company’s acceleration to mid-single-digit revenue growth and the clear signs of improving demand across client segments as evidence that a multiyear recovery in flexible tech staffing is under way, leaving meaningful upside for the shares even after their sharp post-earnings move.

Romeo also highlights improving profitability, noting that gross margins are rising despite seasonal pressures and that initiatives to enhance bill-pay spreads are gaining traction. He believes there is substantial margin expansion potential over the coming years as Kforce shifts more work toward higher-margin solutions, scales its multi-shore delivery model, and leverages its India Development Center to meet growing AI and data-related demand, all supporting his unchanged $32 price target.