Morgan Stanley Cuts Heidrick to Neutral

Analyst Chris Gutek says the stock is no longer cheap enough to overlook uncertainties

Morgan Stanley lowered its investment rating on executive search firm Heidrick & Struggles International (HSII ) to neutral from outperform. Analyst Chris Gutek says like many other cyclical stocks, Heidrick has recovered in recent weeks but he thinks stock is no longer cheap enough to overlook uncertainties. He believes that the company's fundamentals remain poor and that the reduction in the white-collar workforce may delay recovery. He is cutting his 2002 earnings per share estimate to $0.01 and 2003 $0.81.

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