Shares in multi-sector recruiter Hays have fallen 6.2% after Deutsche Bank cuts its 2009 price target by 7.3%.

News website Reuters reports that analysts at the German bank made the cut, to 63p from 68p, because they predict Hays’ gross margins will come under “considerable pressure” due to expected lower volumes in the year to end-June 2009.

Increased bad debt charges and continued declining demand for permanent placements are also expected to affect profitability, analysts add.