Friday, Credit Suisse upgraded Resources Connection Inc. (RECN) shares to Outperform from Neutral and increased its price target to $22 from $16. The brokerage widened its first quarter of 2010 loss per share estimate to $0.07 from $0.05. The brokerage lowered its first quarter of 2010 revenue estimate to $118 million from $125 million.
Analyst McVeigh noted that risk-reward of +30%/-10%, positive catalysts, recent underperformance drive Outperform. The analyst's upgrade is based on what he consider to be an attractive risk-reward given recent underperformance and a few positive catalysts-benefit from new senior management driving tangible financial benefits and the potential that revenue bottoms in first quarter of 2010 due October 1 or second quarter of 2010.
Upgrade RECN-specific, not a shift in the analyst's view on the staffing sector-he is Neutral on the sector given recent strength and his view that the labor market may not recover enough in coming months to drive significant sector revenue improvement.
After several missteps culminated by the unexpected termination of CEO Tom Christopoul on July 23, Resources has made several positive organizational changes, which the analyst believes will drive tangible financial benefit-focusing on revenue growth, including reappointing Don Murray (RECN founder) CEO. This was followed by the appointment of RECN veteran Tony Cherbak president + COO on August 18.
Currently, RECN is up $0.58 or 3.45% and trading at $17.37.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.