LONDON (ShareCast) - Sanlam Securities is advising investors to buy into recruitment group Staffline, saying its shares could rise further if earnings impress.
Staffline on Friday reported upbeat trading in the six months to June and said it was on track to hit first-half earnings targets.
Sanlam said shares in the group had had a strong run and have been consolidating just above the £9 level.
The broker said the re-rating of the stock was likely to slow after reaching pre-recession levels in the last couple of years.
However, it added: "Whilst the rating is unlikely to move materially higher, the share price has scope to move upwards with earnings."
Staffline is due to post half-year results on July 23rd.
Shares in the group had risen 34.5p or 3.85 by 14:07 in London.
PW
Email this article to a friend
or share it with one of these popular networks: