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Investing.com - UBS lowered its price target on Manpower Inc . (NYSE:MAN) to $39.00 from $40.00 on Friday, while maintaining a Neutral rating on the staffing company’s stock. The stock currently trades at $34.09, having declined 37.35% year-to-date. According to InvestingPro analysis, Manpower appears undervalued based on its Fair Value metrics.
The price target reduction follows Manpower’s 7% stock decline on Thursday after the company reported its third-quarter earnings. Despite posting slight earnings per share upside and providing fourth-quarter EPS guidance in line with Street expectations, investors appeared concerned about the company’s gross margin performance, which stands at 16.92%. InvestingPro data reveals the company is currently trading at attractive multiples with a Price/Book ratio of 0.79 and EV/EBITDA of 8.33.
UBS noted that Manpower’s third-quarter results and fourth-quarter guidance revealed weaker gross margins offset by better selling, general and administrative (SG&A) expense leverage. The firm suggested this margin weakness could impact 2026 estimates, where analysts had previously projected approximately 50 basis points of operating margin expansion.
The investment bank highlighted some positive developments, including Manpower’s return to organic growth for the first time in nearly three years and its improved SG&A leverage. However, UBS expressed concern about ongoing estimate risk for 2026.
While Manpower shares trade at less than 7 times EBITDA, UBS indicated the stock may struggle to gain momentum until forward earnings estimates stabilize at a sustainable level. The company maintains a 4.05% dividend yield, and InvestingPro subscribers can access 8 additional key insights about Manpower’s financial health and market position through the platform’s comprehensive Pro Research Report.
In other recent news, ManpowerGroup Inc. reported its third-quarter 2025 earnings, revealing adjusted earnings per share (EPS) of $0.83. This figure surpassed both the consensus forecast of $0.81 and Jefferies’ estimate of $0.80. The company’s revenue for the quarter reached $4.63 billion, slightly exceeding the anticipated $4.6 billion. Despite this better-than-expected performance, Jefferies lowered its price target for ManpowerGroup to $40.00 from $48.00, maintaining a Hold rating on the stock. The adjustment was attributed to margin pressures faced by the company. These developments highlight the challenges ManpowerGroup is navigating despite its earnings beat. The company’s stock experienced a decline in pre-market trading, reflecting broader market concerns. This series of updates provides investors with critical insights into ManpowerGroup’s current financial standing and market perception.
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