Stifel reiterates Buy rating on TriNet Group stock with $97 price target

Published 28/07/2025, 14:26
Stifel reiterates Buy rating on TriNet Group stock with $97 price target
Investing.com - Stifel has reiterated its Buy rating on TriNet Group (NYSE:TNET) with a price target of $97.00, citing the company’s second-quarter performance that modestly outperformed expectations. The stock has shown significant momentum recently, gaining nearly 8% in the past week, though it remains approximately 27% lower over the past six months, according to InvestingPro data.The second quarter results, while down year-over-year due to various known factors, showed higher revenue without corresponding expense increases. Several unexpected items negatively impacted the quarter’s net insurance margin, but these were offset by higher interest income and are not expected to recur in the second half of the year. The company maintains a moderate debt level with a debt-to-capital ratio of 0.24 and operates with healthy profitability metrics.Management has maintained its 2025 guidance, which Stifel views as "very achievable." The firm believes that first-half 2025 results and trends support its outlook for 2026, which projects mid-single-digit revenue growth, 8% EBITDA growth, and 13% EPS growth.TriNet Group is currently trading at 9x 2026 EBITDA, down from its recent trend of 11-12x. This lower multiple reflects market concerns about rising healthcare costs and lingering worries about new business formation and small-to-medium business employment. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of TriNet among 1,400+ top US stocks.Despite second quarter being seasonally less important for out-year estimates, Stifel expressed encouragement about changes underway at TriNet and believes the stock offers "very compelling risk/reward at current levels." With a Fair overall financial health score and management actively buying back shares, InvestingPro subscribers can access 8 additional ProTips and extensive financial metrics to make informed investment decisions.In other recent news, TriNet Group Inc. reported impressive financial results for the second quarter of 2025. The company posted earnings per share of $1.15, outperforming the anticipated $1.02 by 12.75%. Revenue also significantly exceeded forecasts, totaling $1.2 billion compared to the expected $278.93 million, a remarkable difference of 330.22%. These figures highlight a strong performance period for TriNet, with earnings and revenue both surpassing analyst projections. This development follows the company’s ongoing efforts to enhance its financial standing. Analyst firms have taken note of TriNet’s recent performance, with some considering adjustments to their ratings based on these results. Investors are closely watching how these earnings may influence future analyst recommendations. These recent developments underscore TriNet’s financial momentum in the current market landscape.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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