PhillipCapital is initiating coverage on professional staffing and recruitment firm HRnetGroup with a “buy” call and target price of $1.00.

This is expected to give the counter a 33.2% return from its current 77 cent price, research analyst Tan Jie Hui writes in a July 16 report.

“Our target price is set at 14x FY21 ex-cash P/E (net of interest income after tax), given that HRnet has been generating superior ROEs (return-on-equity) than most regional and global recruitment peers,” explains Tan. The historical high of HRnet’s ex-cash P/E was around 14 times.

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