GB : Hays - Still a long way back to peak

We increase our FY21E EBIT by 50% to £89.8m, 6% ahead of management’s £85m guidance. As with peers, stronger than expected net fee income in March, combined with lower y-o-y headcount, has led to high productivity and EBIT drop-through. Hays has put investment for longer-term growth ahead of shorter-term margins and this may mean that the return to peak EBIT is longer than for peers. The valuation is the highest in our peer group. We raise our TP from 155p to 175p. Maintain Hold.