BNP sees recovery emerging in EU recruitment sector
BUZZ-BNP sees recovery emerging in EU recruitment sector ** BNP Paribas Exane sees cyclical progress for European recruitment companies as staffing markets that typically recover first are moving from "stabilisation to recovery", reflecting improving momentum in the U.S.
** It says gross-margin weakness in recent quarters reflects a normal cyclical pattern rather than a structural phenomenon and it will reverse in the coming quarters
** The broker raises 2026-2027 earnings per share (EPS) estimates by 8%-9% annually, and sees its forecasts 3% and 10% above consensus for 2026 and 2027, respectively
** It ups Adecco ADEN.S to "outperform" from "neutral" on potential improvement in the next quarters
** BNP retains its rating changes at MAN (*outperform) and Randstad (*neutral) on less upside potential for both companies, but raises price targets on both stocks
** Adecco shares jump around 5%, topping Switzerland's mid-cap index .SMIM as Randstad is slightly up around 1%
COMPANY | RATING | OLD RATING | PT | OLD PT |
Adecco | Outperform | Neutral | CHF 24 | CHF 19 |
ManpowerGroup | Outperform | Outperform | USD 58 | USD 35.5 |
Randstad | Neutral | Neutral | EUR 34 | EUR 27 |
(Reporting by Kira Britten)
((Kira.britten@thomsonreuters.com))
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