Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, TD Cowen updated its outlook on TriNet Group (NYSE:TNET), a leading provider of comprehensive human resources solutions for small and medium-sized businesses. With the stock currently trading at $79.73 and a market capitalization of $3.95 billion, analyst Jared Levine increased the company’s price target to $77.00, up from the previous $74.00, while maintaining a Hold rating on the stock. According to InvestingPro data, analyst targets for TNET range from $74 to $97, reflecting mixed sentiment about the company’s prospects.
In his research note, Levine explained the rationale behind the price target adjustment, stating that the firm has updated its estimates to reflect the latest considerations before TriNet’s first-quarter earnings report, scheduled for April 24. The adjustments to revenue expectations were described as immaterial, but there were reductions to the adjusted EBITDA estimates. These reductions were attributed to the sunset of Zenefits and the disposition of Clarus (NASDAQ:CLAR) R+D, which have an impact on depreciation and amortization. InvestingPro analysis reveals that four analysts have recently revised their earnings expectations downward, with revenue projected to decline this year.
Levine’s forecast includes modeling an average decline in co-employed worksite employees (WSE) growth of -4.0%, -0.4%, and 1.8% for the fiscal years 2025, 2026, and 2027, respectively. Additionally, he anticipates adjusted EBITDA margins of 7.8%, 8.8%, and 9.2% for those same fiscal years.
The new price target of $77 is based on a 15.0x multiple of the estimated price-to-earnings (P/E) for the calendar year 2026. Levine’s comments and the updated price target reflect the latest financial considerations and operational changes within TriNet Group, providing investors with updated guidance on the company’s valuation.
In other recent news, TriNet Group announced a quarterly dividend of $0.275 per share, with the payout scheduled for late April 2025. This move reflects the company’s ongoing strategy to return value to its shareholders. Additionally, TriNet completed the sale of its subsidiary, TriNet Clarus R+D, to Arvo Tech, a company focused on tax strategy solutions, as part of its plan to concentrate on high-value HR solutions for small and medium-sized businesses.
On the analyst front, Stifel maintained a Buy rating on TriNet, reiterating a $97 price target despite a recent decline in the stock following a revision in the 2025 insurance margin. The analysts expressed confidence in the new CEO’s strategies to address growth and margin issues. Meanwhile, TD Cowen downgraded TriNet from a Buy to a Hold, lowering the price target to $74, citing the lack of immediate catalysts for stock movement.
Needham also maintained a Hold rating on TriNet shares, following meetings with the company’s executives, noting the strategic focus on core HR services and profitable insurance policies. These developments highlight the diverse perspectives among analysts regarding TriNet’s future performance and strategic direction.
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