TriNet Group (TNET – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Kyle Peterson from Needham reiterated a Buy rating on the stock and has a $140.00 price target.
Kyle Peterson has given his Buy rating due to a combination of factors affecting TriNet Group, including the company’s solid sales execution and the prospect of overcoming current challenges. Peterson recognizes that TriNet’s first-quarter results did not meet expectations mainly because of increased insurance costs, which have also impacted other companies in the industry. Despite this, the firm’s sales performance has been impressive, with a more than 50% year-over-year growth in Annual Contract Value (ACV), indicating strong business momentum.
Moreover, Peterson believes that the heightened insurance expenses are a temporary obstacle and anticipates that TriNet will adjust its pricing during upcoming renewal cycles to improve profitability. He views the recent decline in TriNet’s stock price as a favorable opportunity for investors seeking growth at a reasonable price (GARP). While he has slightly lowered the target price to account for the near-term headwinds, Peterson maintains a Buy rating, suggesting confidence in TriNet’s ability to navigate through the current challenges and deliver value to its shareholders.
Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TNET in relation to earlier this year.
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TriNet Group (TNET) Company Description:
TriNet Group, Inc. provides human resources solutions including industry solutions to small and mid sized businesses. Its services include payroll processing tax administration, employee benefits and a human resource technology platform with online and mobile tools and also employee onboarding and termination, compensation reporting, expense management, and benefits enrollment and administration. The company was founded by Martin Babinec in 1988 and is headquartered in Dublin, CA.
