ADECCO : RBC lowers its opinion, sees less potential
January 10, 2024 at 05:12 am EST
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RBC announced on Wednesday that it had downgraded its opinion on Adecco from 'outperform' to 'in-line performance', seeing less potential for the stock after its strong rise last year.
In a research note, the broker recalls that the recruitment specialist benefited from a strong catch-up effect in 2023, which enabled it to climb 38% and significantly outperform its main rival, the Dutch Randstad, on the stock market.
While recognizing that Adecco has a more diversified business model than most of its rivals, the broker believes that the Swiss group will find it difficult to escape the tougher economic conditions expected this year.
Its price target has therefore been reduced from 45 to 43 Swiss francs.
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Adecco Group AG, formerly Adecco S.A., provides human resource (HR) services. The Company's services include temporary staffing, permanent placement, outsourcing, career transition. It operates through two business lines: Staffing and Solutions. The Staffing business line includes General Staffing, which includes Office and Industrial, and Professional Staffing, which includes Information Technology, Engineering and Technical, Finance and Legal, and Medical and Science. The Solutions business line includes Business Process Outsourcing, which includes Managed Service Programs, Recruitment Process Outsourcing and Vendor Management System, and Career Transition and Talent Development, which includes outplacement, career development, change management solutions, training and consulting. Its segments include France, North America, UK & Ireland, Germany & Austria, Japan, Italy, Benelux, Nordics, Iberia, Australia & New Zealand, Switzerland, Emerging Markets and Lee Hecht Harrison.