RGP - Resources Connection: Close To A Turn But Priced For Failure
- Following a decade of underperformance, the company has undergone a significant transformation covering field management, sales, delivery, and cost structure.
- Market dynamics should be favorable as demand for finance/accounting talent increases and gig economy trends continue to play out.
- Assuming a modest positive inflection point in performance in F2022, valuation appears very reasonable, and the dividend secure.
- Catalysts include an improving financial outlook as the company exits its fiscal year (May) and/or the possibility of activism down the road.
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Resources Connection: Close To A Turn, But Priced For Failure