UPDATE 1-Baird cuts Heidrick & Struggles, TrueBlue
(Recasts; adds details, share price)
Oct 6 (Reuters) - Robert W. Baird & Co downgraded executive search firm Heidrick & Struggles International Inc (HSII.O) and TrueBlue Inc (TBI.N) to "underperform" from "neutral," given weakening environment and increased macro pressures.
The demand environment has been weak across geographies and verticals and could further weaken, given tightening credit conditions in near term, analyst Mark Marcon wrote in a note to clients.
The unprecedented negative development in financial services -- Heidrick's largest practice area -- and global macro softening likely leads to 2009 earnings materially below consensus estimates, the analyst said.
"Heidrick's results have been solid thus far, but have shown signs of weakening and are likely to further weaken in the fourth quarter of 2008 and 2009," Marcon said.
The analyst cut his price target by $11 to $23 on the stock of Heidrick, which specializes in finding chief executives, board members and senior-level management.
TrueBlue Inc (TBI.N), a provider of temporary blue-collar workers, has been experiencing contracting bill/pay spreads, which could continue given weak demand, minimum wage increases, and increasing price competition, Marcon said.
He cut his price target by $3 to $12 on the stock.
Given recent global economic shocks, other practices are also expected to experience reduced hiring intentions, the analyst said.
Shares of Heidrick closed at $28.54, while those of TrueBlue ended at $14.33 Friday. (Reporting by Dilipp S. Nag in Bangalore; Editing by Anil D'Silva)
