Analyst Tobey Sommer of Truist Financial maintained a Hold rating on Heidrick & Struggles, boosting the price target to $59.00.
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Tobey Sommer has given his Hold rating due to a combination of factors surrounding Heidrick & Struggles’ recent agreement to be taken private. The acquisition, led by Advent International and Corvex Private Equity, is set at $59 per share, which represents a 26% premium to the 90-day volume-weighted average price. This transaction is anticipated to close in the first quarter of 2026, and it is expected that shareholders will approve the deal.
Sommer views the premium offered as a fair takeout price, especially considering the historical high for the shares was $54.50 in August 2007. Additionally, the valuation of Heidrick & Struggles at an 8.5x EBITDA multiple aligns with the deal price, which prompted an increase in the price target from $48 to $59. Despite the positive signals regarding demand trends in executive search and the strong business performance, the Hold rating reflects the view that the current deal price adequately captures the company’s value.