Sell Recommendation Maintained Amid Subdued Growth, Regional Weakness, and Limited Upside at Current Valuation

Analyst Remi Grenu of Morgan Stanley maintained a Sell rating on Hays plc, with a price target of p44.00.

Remi Grenu has given his Sell rating due to a combination of factors reflecting both operational headwinds and a limited upside at the current valuation. Group net fees declined in March on a like‑for‑like basis, and while the Enterprise segment’s underlying trend was broadly stable after adjusting for major contract losses, the overall growth profile remains subdued despite a solid pipeline and some recent U.S. tech wins.

Regionally, several key markets are either fragile or in transition: France has been loss‑making and is only expected to reach breakeven around 4Q26, Australia shows softer permanent placements despite stability in temp and contracting, and the U.K. faces slight weakening in permanent demand. Management is also exiting smaller or subscale countries and keeping headcount broadly flat, which underscores a focus on preservation rather than aggressive expansion; together with geopolitical uncertainty in the Middle East, these factors support a cautious stance and justify maintaining a Sell recommendation even after the recent share price rise.

In another report released yesterday, Jefferies also reiterated a Sell rating on the stock with a p28.00 price target.

HAS’s price has also changed dramatically for the past six months – from p58.100 to p32.620, which is a -43.86% drop .