MS cuts Randstad as valuation gap to Adecco 'has run too far'

Adecco AG

10/09/2025 11:19

** Morgan Stanley downgrades Dutch staffing firm Randstad RAND.AS to "underweight" from "equal-weight" citing a demanding valuation, while it has a relative preference for its Swiss-French peer Adecco ADEN.S

** While some premium for Randstad is deserved, the "valuation gap has run too far", MS says, and should gradually close, creating a relative de-rating risk for the stock versus its peer

** The broker point out Randstad trades at one standard deviation above its historical average on an EV/EBITA basis

** It expects momentum for the two companies to diverge in the short term, with Randstad set to underperform Adecco on both organic growth and drop-through to profit

** MS remains cautious on the entire staffing sub-sector due to debates on AI headwinds, but adds that a faster recovery could be driven by interest rate cuts or German fiscal stimulus

** Randstad shares fall about 3% in late morning trading, while Adecco is virtually flat at +0.1%

 (Reporting by Hugo Lhomedet)

 ((hugo.lhomedet@thomsonreuters.com))