Underperform - Price 26.10 on Oct. 7
by Baird Associates

Downgrading this executive-search firm to Underperform. We like its long-term prospects, model, and management...but financial-services (HSII's largest practice area) and global-macro softening likely [will weigh]. HSII outperformed the Standard & Poor's 500 since mid-year, [which is] unlikely to continue, medium-term...Fundamentals [have been] solid, but tend to be a lagging indicator. Core organic revenue growth has been decelerating; new confirmations have been declining ...Financial- industry practice is 32% of revenue. Target: 23. Market cap: $505 million.

Heidrick & Struggles (HSII) was upgraded from Sell to Neutral, Merrill Lynch said. Stock is down about 25% this month, and is already pricing in slower econominc growth. New dividend also confirms the company's financial health.

Hendrick & Struggles (HSII) was downgraded from Buy to Sell, Merrill Lynch said. Earnings also cut, because of lower expected business growth in the US.

Downgraded by Goldman Sachs from Buy to Neutral

Downgraded by Matrix Research from Buy to Hold