Broker snap: 'Choppy waters ahead' for recruiters, says Investec

8th Dec 2011 09:50

After two recent updates from recruiters confirmed a marked slowdown in the fourth quarter, Investec has reassessed its forecasts for the sector.The recruitment sector - which Investec highlights as "very economically cyclical" with "little visibility" - is expected to be held back by an recession in both the Eurozone and the UK next year (according to the broker's latest economic predictions).Investec has cut its target prices for sector peers Michael Page (from 400p to 370p), Hays (from 100p to 85p) and Robert Walters (from 310p to 250p). Investec had recently cut its forecasts for SThree, whose target price it has kept at 305p.Nevertheless, the broker keeps a buy rating on the four stocks, saying that the market has already factored in a sharp slowdown. "Short term prospects remain very difficult, but we believe that the underlying structural investment case remains intact."BC