UBS raises Manpower stock price target to $45 on FX improvement

Published 14/07/2025, 15:46
UBS raises Manpower stock price target to $45 on FX improvement

Investing.com - UBS raised its price target on Manpower Inc . (NYSE:MAN) to $45.00 from $42.00 on Monday, while maintaining a Neutral rating on the staffing company’s stock. According to InvestingPro data, the company trades at an attractive PEG ratio of 0.14 and appears undervalued based on Fair Value analysis.

The price target increase primarily reflects improvements in foreign exchange rates, particularly European currencies, which could support second-quarter earnings and third-quarter guidance modestly ahead of market expectations.

UBS noted that several intraquarter data points, including monthly figures from France, contributed to the more positive outlook for the company’s near-term performance.

The firm pointed out that Manpower stock remains down more than 20% year-to-date, suggesting potential for a modest relief rally on better-than-expected results.

Despite the price target increase, UBS expressed reluctance to recommend chasing the stock beyond any short-term rally, citing ongoing challenges in the global macro environment and likely continued pressure on client confidence.

In other recent news, ManpowerGroup reported its Q1 2025 earnings, revealing that while revenue exceeded expectations at $4.09 billion, the company’s adjusted earnings per share (EPS) fell short at $0.44 compared to the anticipated $0.55. This earnings miss has led to cautious future guidance, with an EPS projection for Q2 2025 set between $0.65 and $0.75, and a forecasted revenue decline of 3-7% in constant currency. Additionally, ManpowerGroup announced a reduction in its semi-annual dividend to $0.72 per share, a strategic move attributed to the current earnings environment. Truist Securities and BMO Capital Markets both adjusted their price targets for ManpowerGroup to $48, citing concerns over economic conditions and geopolitical uncertainties affecting hiring trends. Despite these challenges, ManpowerGroup is focusing on technology investments, particularly in AI, to drive future growth. The company also announced executive leadership changes, appointing Becky Frankiewicz as President & Chief Strategy Officer and Ger Doyle as Regional President, North America, effective June 1st. These developments reflect ManpowerGroup’s ongoing efforts to adapt to the shifting market landscape.

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