Citi ups Randstad to 'buy' on an improving top line trajectory

Randstad NV

29/07/2025 09:00

** Citi upgrades Dutch recruiter Randstad RAND.AS to "buy" from "neutral", citing stabilising temp-job trends and an improving top line trajectory

** The broker points to a solid Q2 performance, with organic revenue growth improving sequentially, which underpins the 2025 earnings per share forecasts

** The company seems to be "approaching a point where profits can move with organic top line growth," making its valuation attractive, according to the brokerage

** Citi lifts its PT by 48% to EUR 51, noting the new PT is based on the mid-point of its franchise valuation range

** While gross margin headwinds persist, Citi sees selling, general and administrative expenses providing an offset as management is confident in adjusting costs

** Out of 19 analysts that cover Randstad NV, six rate the stock "strong buy" or "buy", ​ten rate "hold" and three​ rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Anna Peverieri)

 ((Anna.peverieri@thomsonreuters.com))