Goldman Sachs analyst George Tong has reiterated their bearish stance on MAN stock, giving a Sell rating on January 5.
George Tong’s Sell rating on ManpowerGroup is predicated on a variety of concerning indicators, primarily revolving around the company’s significant exposure to the French market. The PRISME data has revealed a marked year-over-year decline in French temporary staffing, a troubling trend given that France accounts for roughly a quarter of ManpowerGroup’s total revenue. With the latest figures showing a steeper drop in temporary jobs, the situation appears to be deteriorating rather than improving.
The analysis conducted by Tong extends beyond France, taking into account weaker manufacturing PMI trends across key European economies, including Italy, Spain, the UK, Germany, Sweden, and the Netherlands. As ManpowerGroup is particularly focused on European industrial temporary staffing, these broader regional economic headwinds suggest a negative impact on the company’s revenue growth. Consequently, with the correlation between French temporary job growth and ManpowerGroup’s revenue so strongly established, the downward revision of revenue projections for France and other European regions justifies the Sell rating and the lowered price target for the stock.
Tong covers the Industrials sector, focusing on stocks such as Equifax, TransUnion, and Cintas. According to TipRanks, Tong has an average return of 4.6% and a 57.37% success rate on recommended stocks.
In another report released on January 5, Exane BNP Paribas also downgraded the stock to a Sell with a $70.00 price target.
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ManpowerGroup (MAN) Company Description:
ManpowerGroup, Inc. engages in the provision of workforce solutions and services. It operates through the following segments: Americas, Southern Europe, Northern Europe, Asia Pacific Middle East, and Right Management. The Americas segment offers services as Manpower, Experis, and ManpowerGroup Solutions through both branch and franchise offices. The Southern Europe segment provides permanent, temporary and contract recruitment, assessment and selection, training and outsourcing services. The Northern Europe includes comprehensive suite of workforce solutions and services through Manpower, Experis, ManpowerGroup Solutions in the United Kingdom, the Nordics, Germany, and the Netherlands. The Asia Pacific Middle East segment operates in Japan, Australia, Korea, China, and India. The Right Management segment delivers talent and career management workforce solutions. The company was founded by Elmer Winter and Aaron Scheinfeld in 1948 and is headquartered in Milwaukee, WI.
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