Broker snap: Cautious outlook at Robert Walters, says Credit Suisse

12th Oct 2011 12:23

Credit Suisse has maintained its neutral rating and 250p target on recruitment firm Robert Walters, but says the outlook is more cautious following the firm's third quarter statement on Tuesday.Gross profit growth (at constant currency) slowed from 21% in the second quarter to just 8% in the third as net fee income from UK operations fell 4%."If the current market slowing turns into a sharp recession there is significant potential downside to estimates in a highly operationally geared business," Credit Suisse."On a risk/reward basis we do not think the stock is fully discounting this potential downside risk and we, therefore, retain our neutral rating."By 12:22, shares were trading 0.13% lower at 194.75p.BC