Korn Ferry Q2 Preview: Significantly Overvalued
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Korn Ferry's stock has risen 17.5% since a previous Hold rating but is now considered overvalued. The Q2 FY25 guidance indicates stable operations with fee revenue expected between $655M-$685M. However, significant growth is not anticipated until FY26. Long-term risks include a moderate revenue CAGR, overvaluation, and challenges with automation trends.
November 26, 2024 | 4:45 pm
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NEGATIVE IMPACT
Korn Ferry's stock is considered overvalued after a 17.5% increase. Q2 FY25 guidance shows stable revenue, but significant growth is expected only by FY26. Long-term risks include moderate revenue growth and challenges with automation.
The article highlights that Korn Ferry's stock is overvalued despite recent gains, with speculative growth already priced in. The Q2 FY25 guidance suggests stable operations but no significant growth until FY26. This, combined with long-term risks such as moderate revenue growth and automation challenges, suggests a negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100