
BBSI Stock Forecast & Price Target
BBSI Analyst Ratings
Bulls say
Barrett Business Services is well-positioned for growth in the coming years, with a strong revenue and EPS beat in the last quarter. The company's focus on providing efficient business management solutions through their integrated platform has attracted a wide customer base with over 8,200 PEO clients in all 50 states. Despite a slight miss in Q4/25 revenue and adjusted EBITDA, the company has experienced overall growth in both categories and continues to expand its PEO services, with a 7% yearly increase and a 1% sequential increase. The company also reported an increase in gross billings by 6.4% year over year, with strong growth in net new client additions. Despite potential obstacles such as geographic concentration and sensitivity to economic cycles, we expect BBSI's momentum to continue and drive shareholder value in the future.
Bears say
Barrett Business Services is facing multiple challenges due to clients' business activity slowdown, the reduction in their gross billings, PEO revenue, and adjusted EBITDA forecasts. Furthermore, the company's reliance on a referral network and exposure to workers' compensation insurance coverage presents a significant risk factor. Though there are signs that gross billings and PEO revenue may improve in 2027, the current outlook for 2026 presents a conservative estimate. The company's valuation remains reasonable, trading at an enterprise value to adjusted EBITDA multiple of 8.4x versus the peer group average of 2.1x, but a reduction in the price target to $41 from $46 is warranted due to the underwhelming 2026 financial guidance.
This aggregate rating is based on analysts' research of Barrett Business Services and is not a guaranteed prediction by Public.com or investment advice.
BBSI Analyst Forecast & Price Prediction
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