Sterling Check initiated with a Neutral at Citi

Citi initiated coverage of Sterling Check with a Neutral rating and $13 price target. The analyst says Sterling is one of the larger players in pre- and post-hiring employee screening services. The firm sees the stock benefiting over the long-term from behavioral shifts in hiring trends and rising human capital management technology demands that likely encourage industry consolidation. In the meantime, however, Citi is cautious on the stock’s leading cyclical nature, citing decelerating job growth, macro sluggishness, and normalization in job turnover following the “great resignation.” These will likely leave the stock range-bound for a period, contends the firm.