Analyst George Tong of Goldman Sachs reiterated a Sell rating on ManpowerGroup (MAN – Research Report), retaining the price target of $65.00.
George Tong has given his Sell rating due to a combination of factors concerning ManpowerGroup’s performance, particularly in the French market which is significant for the company, accounting for about a quarter of its total revenue. The recent PRISME data indicates a troubling trend in the French temporary staffing sector, with a year-over-year decrease in temporary jobs that appears to be accelerating. This decline, which has worsened from the previous quarter, suggests potential risks to ManpowerGroup’s revenue outlook in France, especially given the historically strong correlation between French temporary job growth and ManpowerGroup’s revenue from that region.
Additionally, the outlook for Southern and Northern Europe also contributes to the cautious stance, with weak manufacturing PMI trends in key markets like France and Germany. Although there is some positive movement in the UK and Italy, these improvements may not be enough to offset the broader regional challenges. ManpowerGroup’s focus on European industrial temporary staffing means these trends are particularly relevant to its business. Consequently, the analysis reaffirms the Sell recommendation alongside a 12-month price target of $65, reflecting these concerns and the potential impact on the company’s financial performance.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on MAN:
