MS sees European staffing sector worsening in Q2, cuts Randstad to 'equal-weight'

Randstad NV

18/07/2024 10:43

** Morgan Stanley sees a deteriorating environment in the
European staffing sector, as it cuts PTs across the board due to
weak market data and negative read-across from specialists Hays
 HAYS.L  and Page  PAGE.L 
    ** The broker reiterates the cautious outlook expressed in
March, with recent staffing data in key geographies and an
uncertain outlook suggesting no material recovery for the sector
in H2
    ** "Our base case now assumes muted activity volumes over
the rest of 2024 and a gradual recovery thereafter - a scenario
we do not think is fully reflected in consensus", MS notes
    ** It cuts Randstad's rating to "equal-weight" from
"overweight", in line with peers Page and Hays, while it
maintains Adecco  ADEN.S  as "underweight" due to exposure to
the French market and higher financial leverage
    ** Year-to-date, the stocks of Adecco, Randstad, Page and
Hays are down between 13% and 26%
    
 COMPANY    RATING        OLD RATING     PT          OLD PT
 Adecco     No Change     Underweight    27.00 EUR   30.50 EUR
 Randstad   Equal-weight  Overweight     46.00 EUR   49.00 EUR
 Page PLC   No Change     Equal-weight   405p        425p
 Hays PLC   No Change     Equal-weight   90p         87p
 
 (Reporting by Enrico Sciacovelli)
 ((Enrico.sciacovelli@thomsonreuters.com))