ManpowerGroup (MAN – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Heather Balsky from Bank of America Securities reiterated a Sell rating on the stock and has a $65.00 price target.
Heather Balsky has given his Sell rating due to a combination of factors affecting ManpowerGroup’s performance and outlook. The primary concerns highlighted include the persistent uncertainty in the macroeconomic environment, which has led employers to adopt a cautious approach to hiring. This is especially evident in the European market, which is a significant area of operation for ManpowerGroup. While there are some signs of stabilization in demand, the visibility for sales growth remains limited compared to other stocks in the Business Services sector. Additionally, there is a lack of confidence in management’s ability to navigate through the current economic challenges, as well as depressed manufacturing PMI levels across Europe, which add to the cautious near-term outlook for the company.
Despite a slight earnings per share (EPS) beat in the first quarter compared to consensus estimates, sales underperformed expectations due to a sharper decline and higher interest expenses. While second-quarter guidance is more positive than expected, mainly due to higher margins, there are still concerns about sales performance and pressure on gross margins, particularly in the permanent staffing segment. Balsky’s unchanged price objective of $65 reflects these ongoing challenges and is based on a 10x 2025 earnings multiple, implying that the current stock price may be overvalued given the anticipated earnings trajectory and prevailing headwinds in the industry.
In another report released on April 8, Goldman Sachs also reiterated a Sell rating on the stock with a $65.00 price target.
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.
