Recruiter Kelly Services stock could double – Noble Capital Markets

Analysts at Noble Capital Markets value small-cap recruiting company Kelly Services, one of the largest international staffing agencies, at $27 per share. That is nearly double its current market price. The company’s revenue for the fourth quarter of 2024 was in line with Wall Street expectations, while its adjusted EBITDA delivered a beat.

Kelly Services shares have the potential to rise to $27 per share, according to Noble Capital Markets. At the close of trading on Friday, February 14, they traded at $14.14 per share, implying upside of almost 91%.

Noble published its report on Friday, the day after Kelly reported its fourth-quarter results. Its revenue declined 3.3% year over year to $1.2 billion. However, organic revenue grew 4.0%. Adjusted EBITDA increased 34% versus the last-year period to $43.5 million. This represents “strong profitability,” according to Noble. It noted that Kelly’s revenue met expectations, while its EBITDA beat the Noble forecast by 9%. Adjusted earnings per share of $0.86 were nearly 2.6 times better than Noble expected.

The market also reacted positively to the company’s financials. On the day they were published, Thursday, the stock surged 7.2% to $14.25 per share. On the next day, it gave back 0.77%. Recall that today, February 17, is a holiday in the U.S.

In recent years, Kelly Services has been restructuring. For example, it sold its business in Brazil and Russia, as well as noncore real estate assets. The latest move was the sale of its European division in January 2024. This allowed the company to focus on “higher margin, higher growth global MSP solutions, global RPO solutions, and specialty outcome-based and staffing services in North America,” the company stated.

To expand its operations in North America, Kelly acquired Motions Recruitment Partners in May 2024. This allowed it to increase its market share in several key verticals and expand its EBITDA margin, Noble notes.

For the first half of 2025, Kelly guides for revenue to grow approximately 10%, with most of the growth to come in the second quarter. Noble forecasts that in the first quarter, Kelly’s revenue will increase 10% year over year to $1.16 billion and its adjusted EBITDA by nearly the same amount to $36.5 million.

Four analysts track Kelly Services, according to MarketWatch. Their recommendations are split evenly: two “buys” and two “holds.”