2024-04-04 09:35:08 ET
Summary
- I think The Hackett Group will have a hard time meeting growth estimates over the next few years due to a decline in demand for consulting services.
- The company is banking on AI consulting demand to create more interest for its other products, including its benchmarking services which stands out as a good business segment.
- Despite these hopes and given the competitiveness of AI consulting services, I think that The Hackett Group will find it difficult to stand out amongst larger and better capitalized peers.
- My $21 price target is based on lower than expected revenue growth and flat margins in FY2024, along with a 12x adjusted FCF/share multiple.
The Hackett Group, Inc. ( HCKT ) is a strategic consulting and advisory firm best known for its benchmarking business that utilizes data from leading global businesses to help Hackett’s clients gain insights into the execution of certain parts their businesses. Hackett gets this data from companies that are clients with Hackett and use Hackett’s benchmark data....
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The Hackett Group: AI Hopes Seem Too Optimistic