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On Thursday, Truist Securities adjusted its outlook on Manpower Inc . (NYSE:MAN), reducing the staffing company’s price target from $74.00 to $70.00. Despite this change, the firm maintained its Hold rating on the shares. According to InvestingPro analysis, Manpower appears undervalued at current levels, while maintaining an impressive 5.1% dividend yield with a 31-year streak of consistent dividend payments. The price target adjustment reflects several factors that are expected to influence the company’s performance.
The analyst at Truist Securities, Tobey Sommer, noted that while an improvement in staffing demand is anticipated by mid-2025, there are multiple reasons for maintaining the Hold rating on Manpower stock. One significant concern is the continued strength of the dollar, which is likely to pose a challenge for the company. With total revenue of $18.08 billion and a beta of 1.44 indicating higher market sensitivity, Manpower’s limited exposure to the U.S. market, with only approximately 15% of its revenue originating from the region, could dampen the benefits of a potential U.S. economic recovery for the firm. InvestingPro subscribers have access to detailed geographic revenue breakdowns and 11 additional key insights about Manpower’s business fundamentals.
Further risks include the possibility of France, a key market for Manpower, increasing taxes, which could lead to additional downward pressure on estimates. Moreover, a major portion of the demand weakness can be attributed to bench regions, areas where Manpower has a significant presence. These regions tend to create substantial negative operating leverage when business conditions deteriorate.
Truist Securities also expressed caution regarding Manpower’s exposure to European manufacturing clients. The faltering economic growth in many crucial markets, coupled with the risk of tariffs, contributes to the cautious stance taken by the firm. These factors collectively underpin the decision to lower the price target to $70.00 for Manpower stock while reiterating a Hold rating.
In other recent news, ManpowerGroup has experienced noteworthy developments in its financial and leadership sectors. The company reported a 2% decline in third-quarter revenue, totaling $4.5 billion, and an 8% decrease in adjusted earnings per share to $1.29. Despite this, Manpower’s Talent Solutions revenue saw a 7% rise, primarily driven by a 9% revenue increase in Japan. Additionally, the company announced a semi-annual dividend of $1.54 per share.
In terms of leadership, ManpowerGroup announced the retirement of Richard Buchband, Senior Vice President, General Counsel, and Secretary, effective December 31, 2024. Ger Doyle has been appointed as the new U.S. Country Manager, succeeding Kye Mitchell as Head of Experis U.S.
Analysts have issued mixed outlooks on the company. BMO Capital cut Manpower’s stock target to $68 due to foreign exchange headwinds, while Goldman Sachs maintained a Sell rating, reducing the target amidst concerns over French revenue. Meanwhile, Truist Securities revised its price target from $78 to $74, projecting approximately flat EBITDA growth in 2025, with a more robust growth of around 30% in EBITDA anticipated for 2026. These recent developments reflect the ongoing adjustments ManpowerGroup is making in response to the current economic climate.
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