HireRight falls on near-term growth concerns
HireRight, Inc. (Nasdaq: HIRE), a provider of on-demand employment screening solutions, could see its near-term growth rate slow due to a sagging U.S. labor market, according to an analyst with financial services firm Robert W. Baird & Co.
“We expect the company’s growth to slow in the near-term, given a slowing U.S. economy and labor market, which has begun to impact the growth rate of revenue from existing clients," wrote analyst Mark Marcon, according to an Associated Press report after the start of trading.
However, analyst Laura Lederman from William Blair & Co., which has performed investment banking services for HireRight within the last 12 months, initiated coverage of the Irvine, Calif.-based company with a “Market Perform” rating and projected aggressive growth. “HireRight’s scalable, multi-tenant infrastructure allows earnings to grow in excess of revenue,” Lederman said in a press release. “We believe that investors will likely reward this visibility and scalability.”
Still, at 3:42 p.m. ET, HireRight (Nasdaq: HIRE) was down $2.79, or 22%, to $10.02.
