Broker snap: Walters better value than Michael Page

6th Oct 2010 12:50

KBC Peel Hunts says Robert Walters is firing on all cylinders - an unfortunate term to use when describing a recruitment firm - and full year earnings upgrades are expected after Wednesday's interim management statement.Third quarter net fee income came in ahead of Peel Hunt's expectations at £42.5m; the broker had pencilled in a figure of £39m for net fee income. According to management, the business is running about as well as it could be, maintaining the momentum into the fourth quarter.Peel Hunt expects to upgrade its clean profit before tax forecast for the current year by around 10% from £10.8m in the wake of the trading update. The target price for the stock has been bumped up by 30p to 320p."Robert Walters is a well run, quality recruiter with excellent and diverse international exposure and we have promoted it to our conviction list," Peel Hunt analyst Henry Carver said.In Carver's view, the share "offers investors all the qualities Michael Page does (bar liquidity) but at a better price."