Overall employment services volumes continue to be depressed, highlights Morgan Stanley, following lower FY24 guidance by APM Human Services International.

Management now anticipates FY24 profit (UNPATA) of between $95-105m compared to the $114.5m previously expected by consensus. Prior 2H/4Q positive volume seasonality is no longer expected.

More postively, the stock is trading at a discount to private equity interest, notes Morgan Stanley. Madison Dearborn Partners has submitted a revised non-biding offer of $1.40/share.

Equal-weight rating. Target $1.40. Industry view is In-Line.

Sector: Commercial Services & Supplies.

Target price is $1.40.Current Price is $1.63. Difference: ($0.23) - (brackets indicate current price is over target). If APM meets the Morgan Stanley target it will return approximately -16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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