Korn/Ferry Int. (KFY) Stock Forecast & Price Target

Korn Ferry reported strong fee revenue growth of 3% year-over-year and 6% quarter-over-quarter, achieving $712 million, exceeding consensus estimates of $690 million. The Executive Search segment demonstrated significant performance, growing 14% year-over-year to $227 million, also surpassing analyst expectations. Additionally, the company's earnings per share (EPS) rose 5% year-over-year to $1.32, exceeding the consensus forecast of $1.26, indicating overall solid financial health and operational efficiency.

Korn Ferry faces several significant risks that contribute to a negative outlook on its stock, including challenges in recruiting and retaining talented executive consultants which could undermine relationships with key executives and firms. Additionally, a potential decline in executive turnover, decreased use of search services, and a reduction in the number of executive positions due to corporate consolidations or liquidations could further hinder revenue generation. Moreover, adverse currency fluctuations, public pressure on executive compensation, and emerging pricing pressures from financially strained competitors pose threats to the company's margins and overall financial performance.