CFRA upgrades Adecco Group stock rating to Hold on job market recovery

Published 06/08/2025, 14:28
CFRA upgrades Adecco Group stock rating to Hold on job market recovery

Investing.com - CFRA has upgraded Adecco Group AG (SWX:ADEN) (OTC:AHEXY) from Sell to Hold and raised its price target to CHF27.00 from CHF20.00, citing gradual recovery in job activity.

The Swiss staffing company reported a 1% year-over-year decrease in organic revenue to EUR11.3 billion for the first half of 2025. EBITA excluding one-offs fell 19% year-over-year to EUR273 million, with margins contracting by 50 basis points to 2.4%.

Adecco (SIX:ADEN) attributed the profit decline to lower volumes and an unfavorable business mix, though these factors were partially offset by cost management initiatives implemented by the company.

Looking ahead, Adecco expects modest positive momentum in the third quarter of 2025, with gross margins anticipated to rise sequentially in line with seasonal patterns.

CFRA’s new price target is based on a 2025 price-to-earnings multiple of 12.3x, which exceeds Adecco’s five-year forward P/E of 9.7x, a premium the research firm considers justified by the expected gradual recovery in job market activity.

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