Roth MKM Maintains Buy Rating on Hackett Group with $28 Price Target

Roth MKM analyst Jeff Martin reiterated a Buy rating on The Hackett Group with a $28.00 price target. Martin is a 5-star analyst with a 54.61% success rate and 14.5% average return. The company reported a quarterly revenue of $77.87 million and net profit of $3.14 million in its latest earnings release.

The Hackett Group Inc. (HCKT) reported its Q2 2025 earnings, showcasing a 2% year-over-year (YoY) increase in revenues to $77.6 million before reimbursements [1]. The Global SMBT Segment revenue grew by 5% to $43.6 million, while the SAP Solution Segment revenue surged by 11% to $13.5 million. However, the Oracle Solution Segment revenue decreased by 7.5% to $20.5 million due to a large engagement wind-down [1].

The company's AI enhancements, particularly in the Gen AI platforms AI XPLR and ZBrain, are expected to attract more clients and strategic partners. These platforms are designed to offer sophisticated AI solutions tailored to client technology landscapes and to recommend specific agents for AI use cases, improving solutioning speed [1]. The company also announced a strategic partnership with Salonias, a leading provider of process intelligence software, which is anticipated to accelerate growth and create significant channel expansion opportunities [1].

The AI Explorer licensing revenue expectations and the impact of economic uncertainty on client decisions were key points discussed during the earnings call. The company is addressing potential non-AI headcount concerns and leveraging their Gen AI-assisted platform, Accelerator, to drive productivity improvements [1]. Despite the challenges in the Oracle segment, the company's strategic headcount adjustments and AI-assisted implementation tools like Accelerator are expected to mitigate the negative impact on decision-making and client engagement [1].

Roth MKM analyst Jeff Martin reiterated a Buy rating on The Hackett Group with a $28.00 price target. Martin is a 5-star analyst with a 54.61% success rate and 14.5% average return. The company reported a quarterly revenue of $77.87 million and net profit of $3.14 million in its latest earnings release [2].

The recent collaboration between Hackett Group and Celonis, along with disappointing Q2 earnings and reduced net income, adds layers to the company's evolving narrative, especially given its aggressive pivot to generative AI. This strategic shift aligns with their expansion into AI via the AI XPLR platform and the acquisition of LeewayHertz. However, the partnership's immediate impact may be limited as the focus remains on overcoming challenges such as declining Oracle revenues and e-procurement issues, which could constrain revenue growth despite projected gains from AI ventures [2].

The company's long-term performance underscores the transformative phases it is undergoing while adjusting to current market demands. Despite the significant decline in share price last week, the consensus price target of $28.33 remains a significant 36.78% above the current US$20.72 share price, suggesting potential for growth if forecast improvements materialize [2].

References:
[1] https://www.ainvest.com/news/hackett-group-q2-2025-earnings-call-highlights-revenue-2-sap-solution-segment-sees-11-growth-2508/
[2] https://finance.yahoo.com/news/hackett-group-inc-hckt-q2-073226245.html