Kelly Services price target raised to $26 from $25 at Barrington

Barrington raised the firm’s price target on Kelly Services to $26 from $25 and keeps an Outperform rating on the shares post the Q2 report. The analyst reduced revenue estimates due to increased headwinds from economic uncertainty, but raised profitability forecasts due to the benefits of the company’s transformation initiative. The firm believes valuation multiple expansion for Kelly above historical levels would be justified over the long term due to its higher margin profile following the transformation.