Robert Half International Inc. (NYSE:RHI) was downgraded to sell from buy at DA Davidson with a price target of $120 down from $125, despite the company’s strong Q4 results.

Analysts at DA Davidson said the margins may suffer as wages start to rise and unemployment rates reach full employment. However, they admitted that they might be early in making this call. The analysts believe we are at or near that point in the recovery, and they are not confident that remote work can extend this cyclical labor dynamic much longer.

The company’s Q4 results came in significantly better than the Street estimates. Quarterly revenue grew 36% to $1.7 billion and adjusted EPS was up 81% to $1.51, as strong demand for temporary staffing and permanent placement, combined with remote work, is boosting growth and margins to record levels.

The company expects Q1/22 revenue to range from $1.75 billion to $1.83 billion and EPS to range from $1.39 to $1.49, compared to the consensus estimates of $1.68 billion and $1.31, respectively.