increased its quarterly cash dividend from $.11 to $.12 per share.

9.4

Outperform - Price 19.43 on Dec. 9
by Baird Securities

We consider RHI the pioneer and leader in specialized staffing. [It has] successfully leveraged its powerful brand equity in the finance and accounting marketplace....The slowing growth of the U.S. labor force should provide substantial opportunities....We're reducing our estimates to reflect a worse than previously expected global macro environment. We're reducing our Q408E-EPS from 26 cents to 25 cents (consensus 27 cents) and reducing our 2009 EPS estimate from 75 cents to 57 cents (consensus 69 cents). The stock is trading near multiyear lows on several metrics -- at 10.4 times on a long-term P/E basis, or 4.7 times on an [enterprise value/earnings before interest, taxes, depreciation and amortization] basis versus two-year averages of 17 and 8.1 times, respectively. Our 23 target reflects 14 times our '08E-EPS and 6.5 times EV/'08E-Ebitda, discounts to the historical average multiples, given projected earnings declines in 2009. Market cap: $3 billion.

Robert Half (RHI) was downgraded from Neutral to Sell at Merrill Lynch. Cyclical pressures should intensify, and estimates were cut below consensus through 2009.

recovery play

"The shares have tumbled 40% since February, to the mid-20s. Barring a severe economic slump, they should be trading around 40 by the conclusion of 2008."

Great Company

BUSINESS SERVICES, STAFFING & OUTSOURCING

Recommended by a friend.

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