Robert Half (NYSE:RHI) shares rose 1.2% in pre-market trading after BMO Capital upgraded the staffing firm’s stock to Outperform from Market Perform and increased its price target to $47 from $45.
BMO said it believes the second quarter of 2026 marked the low point of the company’s business cycle, with revenue growth and improving profit margins expected to emerge from the third quarter onward.
Analyst optimism grows after earnings
The latest upgrade follows a series of analyst revisions after Robert Half reported second-quarter results on July 23.
The company posted revenue of $1.34 billion, ahead of analysts’ expectations of $1.32 billion, while earnings per share of $0.26 matched consensus forecasts.
Following the results, Truist raised its price target to $50 from $40 while maintaining a Buy rating. Goldman Sachs also increased its target price to $29 from $26, although it retained its Sell recommendation, reflecting a more cautious outlook despite acknowledging improving fundamentals.
Management forecast third-quarter revenue of between $1.31 billion and $1.41 billion, broadly in line with Wall Street expectations of approximately $1.35 billion.
Supportive market backdrop aids staffing stocks
The broader U.S. market also provided support, with the S&P 500, Nasdaq and Dow Jones Industrial Average all trading higher as investor sentiment improved.
Staffing companies such as Robert Half are closely linked to labour market conditions and economic confidence, making the sector particularly responsive during periods of improving market sentiment.
BMO also noted that staffing businesses have historically outperformed during the early stages of economic recoveries, strengthening the investment case for the sector.
Investors reassess valuation
The combination of a favourable analyst upgrade, stronger sentiment following quarterly earnings and a positive market environment helped lift Robert Half shares in pre-market trading.
Investors are increasingly reassessing the company’s valuation after a prolonged period of weakness, with expectations growing that improving operating performance could support a broader recovery in the stock over the coming quarters.
Robert Half stock price
