Randstad to benefit from improving labour market, Bernstein double upgrades

Randstad NV

14/02/2025 08:12

** Bernstein upgrades Randstad  RAND.AS  to "outperform" from
"underperform", saying the world's biggest staffing firm can
benefit from the improving yet weak labour markets
    ** The brokerage says North America (about 25% of Randstad's
gross profit) and temps (about 70% of gross profit) should lead
any market recovery, with gross margins to follow
    ** It notes that PMIs are improving in the U.S. since
October and in Europe since January, and points to stabilising
job postings in the U.S., France, Germany and Britain
    ** It says U.S. temp numbers appear to have troughed in
October, with the ratio of U.S. job openings to unemployment
claims rising since then
    ** Randstad's number of temps at work has also troughed,
Bernstein adds
    ** It also notes the stock's valuation is close to all-time
lows, with risk now skewed to the upside; raises PT by 35% to 50
euros
     
    ($1 = 0.9552 euros)

(Reporting by Michal Aleksandrowicz)
((mailto:michal.aleksandrowicz@tr.com))