Analyst upgrades Korn Ferry on improving trends

HARTFORD, Conn. (AP) — Shares of Korn Ferry edged up slightly Monday as an analyst upgraded the staffing company on improved trends in hiring, revenue and the economy.

Analyst Frank Atkins of SunTrust Robinson Humphrey upgraded the Los Angeles company to "Buy" from "Neutral."

He said in a client note Monday that he found a "pronounced improvement" in a SunTrust Robinson Humphrey poll of executive search firms, with half of respondents saying they believe staffing turned up in September.

In addition, Atkins said firms expect revenue to rise in the next year from negative 0.6 percent in August to a 2.6 increase in September, which he said is the highest expected growth since September 2008.

Private executive search firms also are optimistic about business conditions in September and the outlook for the next 60 days, with 75 percent indicating that October and November should improve, Atkins said.

"Our view is that a resumption in executive turnover rekindles growth exiting a recession, which is spurred further by global economic growth in the second half of an expansion," he said.

In late morning trading shares rose 38 cents, or 2.7 percent, to $14.30.