Broker snap: Hays worth holding for the yield

2nd Sep 2010 11:44

Recruitment firm Hays delivered full year results that were ahead of expectations but the outlook for the UK continues to look bleak in KBC Peel Hunt's view, though the broker notes this is largely reflected in the price."Current performance echoes what the peer group has been saying, with markets having been tough in the first half now returning to growth. International headcount is up c200 heads, but we note that there were reductions in UK and Europe - overall heads are down slightly to 4,508 from 4,558," said KBC analyst Henry Carver.The broker is sticking with its "hold" recommendation and 90p price target. It sees few catalysts for share performance in the near term, but the shares are worth holding for the 6.2% yield. Panmure Gordon is of similar mind to KBC. It also recommends holding the shares, though its price target is 92p. The broker thinks there are better opportunities elsewhere in the sector, such as SThree.