Craig-Hallum upgrades Hackett Group to Buy, raises price target to $28

As previously reported, Craig-Hallum upgraded Hackett Group to Buy from Hold with a price target of $28, up from $25. The firm notes revenue and adjusted EPS were ahead of expectations. Oracle Solutions remained the key revenue drivers in the quarter, while Global S&BT grew a modest 3%, and SAP solutions declined 7%. Revenue guidance for Q1 was modestly below Craig-Hallum previous estimates, but EPS was in the middle of the range, the firm says. Craig-Hallum has modestly lowered its Q1 estimates, but expects the current efforts regarding Generative AI to drive stronger growth rates in the back half of the year.