Ahead Of The Bell: Resources Connection

HARTFORD, Conn. (AP) — A Credit Suisse analyst raised his rating Friday on Resources Connection Inc., saying recently-installed management should help the performance of the staffing company for accounting and finance firms.

Analyst Kevin McVeigh upgraded the Irvine, Calif., company to "Outperform" from "Neutral."

"Our upgrade is based on what we consider to be an attractive risk-reward given recent underperformance and a few positive catalysts," he said in a client note.

The catalysts include new senior management "driving tangible financial benefits and the potential that revenue bottoms" in the first quarter of 2010, McVeigh said.

"After several missteps culminated by the unexpected termination of CEO Tom Christopoul on July 23, Resources has made several positive organizational changes, which we believe will drive tangible financial benefit," McVeigh said.

Changes that investors should applaud including Resources Connections' reappointment of founder Don Murray as CEO, he said. This was followed by the appointment of company veteran Tony Cherbak as president and chief operating officer Aug. 18, McVeigh said.