BNP Paribas downgrades Robert Half to Underperform on AI risk

BNP Paribas Exane downgraded Robert Half (RHI) to Underperform from Neutral with a $22 price target The stock in premarket trading is down 2%, or 57c, to $26.24. BNP believes artificial intelligence and automation will hurt the employment agencies since temps are 40% more likely to be exposed to roles at high risk. The firm also sees headwinds from cyclical normalization following the “hiring bonanza” post COVID. It sees AI risk materially reducing the long term multiples of the staffing companies. As such, BNP downgraded both Robert Half and PageGroup to Underperform and Adecco to Neutral.