UPDATE: Citi Lowering Price Target On Kelly Services

Citi Investment Research is out with a research report on Kelly Services Inc KELYA and is lowering its price target to $18 from $23 after it reported earnings. It has a Hold rating on shares. In a note to clients, Citi Investment Research writes, "KELYA's 2Q11 results were solid, with Rev/EPS of $1,405/$0.53 coming in solidly above Street at $1,375/$0.29. Revenue trailed CIRA at $1,439, but EPS was solidly above CIRA estimate of $0.43. EPS beat was mainly due to a lower- than-expected tax rate and improved alignment of costs. On an incremental basis, margins were +6% Y/Y, which was better than last quarter's margin at +1%, but still below mid-teen margins seen in prior quarters. On a positive note, after over 2 and a half years, KELYA reinstated its quarterly dividend starting at $0.05/sh (or 1.4% yield)." Shares of KELYA gained 14 cents yesterday to close at $13.67.