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Monday, Truist Securities adjusted its stance on Manpower Inc . (NYSE:MAN) shares, reducing the price target from the previous $55.00 to $48.00, while maintaining a Hold rating on the staffing company’s stock. The stock, currently trading at $39.79, has declined over 22% in the past week alone. The adjustment follows the company’s recent financial guidance, which has shown potential weaknesses in the face of a slowing economy. According to InvestingPro data, the stock is currently trading near its 52-week low of $39.87, with multiple indicators suggesting undervaluation.
Manpower’s exposure to manufacturing clients has been a particular point of concern for Truist Securities, especially as economic growth falters in many of the key markets that Manpower serves. The firm’s analysts noted that Manpower’s stock has underperformed, dropping 18% compared to the S&P 500’s slight increase of 0.5%. This decline is attributed to several factors, including earnings per share (EPS) guidance for the second quarter that is approximately 30% below the consensus expectations.
The company’s recent guidance also indicates that it only reflects current demand trends, leaving room for further downward revisions if economic conditions deteriorate. Additionally, Manpower has adjusted its expected tax rate for 2025 to be around nine percentage points higher than previously guided, which could impact profitability. Trading at a P/E ratio of 17x and with a price-to-book ratio of 0.89, the stock appears attractively valued. Discover more detailed valuation metrics and 16 additional key insights with InvestingPro.
Truist Securities sees the latest results from Manpower as a concerning indicator for the broader sector it covers. Despite this, there was a slight positive note in the performance of Experis, a professional resourcing and project-based workforce solutions division of Manpower. Experis’s revenue decreased by 6% year over year in the first quarter, which is a marginal improvement from the 7% year-over-year decline seen in the fourth quarter. While challenges persist, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, presenting a potential opportunity for value investors.
In other recent news, ManpowerGroup Inc. reported its Q1 2025 earnings, revealing a significant miss on earnings per share (EPS), which came in at $0.44, falling short of the anticipated $0.55. However, revenue exceeded expectations, reaching $4.09 billion against a forecast of $3.98 billion. Despite the revenue beat, the company faced challenges in Europe and North America, which impacted its financial performance. ManpowerGroup is focusing on technology and AI investments to drive future growth, with plans to expand its Experis Academy and MyPath upskilling programs. In related developments, BMO Capital Markets downgraded Manpower’s stock target from $54.00 to $48.00, citing trade policy concerns and a cautious hiring environment. The firm maintained a Market Perform rating, reflecting ongoing geopolitical and economic uncertainties. ManpowerGroup’s management remains optimistic about stabilizing hiring trends, particularly for specialized skills, and anticipates continued challenges in key markets.
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