First Advantage (FA) may face slowing hiring on macro headwinds after Q1 topped estimates by Wall Street analysts, RBC Capital Markets said Friday in a report.
"We monitor for macro-related shocks that could impact quit rates over the near term" for First Advantage, which provides employment background screening, RBC said.
The company "continues to make progress on new wins and cross-sell," and the "solid progress on the Sterling acquisition cost synergies delivered margin upside" in Q1, the report said.
First Advantage's "transaction-based revenue model makes it sensitive to hiring trends" amid prospects of macro and geopolitical uncertainty," RBC said.
High leverage from the Sterling deal added volatility to First Advantage's shares, the note said.
RBC downgraded First Advantage stock to sector perform from outperform with a $20 price target.
First Advantage shares fell 1.6% in recent Friday trading.
Price: 17.54, Change: -0.29, Percent Change: -1.63
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。