Needham keeps a Buy rating and $15 price target on HireRight while also adding the stock to the firm’s Conviction List following a meeting with its CEO and CFO. The analyst contends that the market is discounting the positive impacts of the company’s margin expansion and capital return initiatives, which puts HireRight in a strong position to meet or beat Street EBITDA/EPS figures even against a subdued demand backdrop for background screening. At multiples of 6.8 on price to earnings and 6-times on enterprise value to expected EBITDA, the stock trades at a “steep discount” relative to peers, the firm tells investors in a research note.
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