Korn Ferry's (KFY) top line is set to benefit from growth in executive search, along with a potential boost in sentiment from improving labor market and macroeconomic conditions, Truist said Friday in a note.
The brokerage said private firms expect executive search to grow 12% in the second half of the year, led by rising volumes in North America.
While artificial intelligence is driving workflow efficiency, it has not hurt demand for executive-search firms, reinforcing the durability of the high-touch search model, Truist said.
Truist raised its fiscal Q1 EPS estimate to $1.37 from $1.35 and its revenue estimate to $740 million from $736 million. It also projects fiscal 2027 executive-search revenue growth of 8%, up from 6% previously.
The investment firm reaffirmed the company's buy rating and raised its price target to $100 from $80.
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