Robert Half Hold Rec Maintained

Robert Half International (RHI - Analyst Report) is one of the world's largest providers of temporary staffing, project professionals and permanent placement services to the finance and accounting industries. Robert Half International provides specialized staffing and risk consulting services worldwide through Accountemps (temporary staffing), high-end administrative staffing, senior-level accounting and finance project professionals, IT consultants and full-time professionals, permanent placement and risk consulting and internal audit services.

Although the company benefited from double-digit revenue growth in 2007, concerns remain about an economic slowdown negatively impacting staffing companies like Robert Half. The operating margin is contracting, primarily due to weak operations at Protiviti [risk consulting and internal audit services], which embarked on an aggressive global staff expansion program at the same time revenues came under pressure from reduced client demand for compliance-related employees.

The Hold rating is maintained. Over the last five years, the company's stock traded in a P/S [price-to-sales] range of 1.05 to 2.62, with the stock dropping to 0.67 times net service revenues in the last few months. Although the company has generated strong revenue and earnings growth in 2006 and 2007, a potential cyclical peak for the company's U.S. businesses remains the primary concern.

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