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On Friday, BMO Capital maintained its Outperform rating on staffing company TrueBlue (NYSE:TBI), with a steady price target of $12.00. The firm's analysis led to a revision of the model, altering certain assumptions related to interest and other income by excluding one-time items from previous quarters.
Additionally, tax estimates were updated to reflect a zero percent GAAP tax rate, leveraging the company's deferred tax valuation allowance.
The modifications in the model resulted in a decrease in the projected adjusted earnings per share (EPS) for the years 2024 and 2025. However, BMO Capital emphasized that no other major line items in TrueBlue's financials were altered.
TrueBlue's stock performance will continue to be monitored by investors in light of these updated estimates. The company's ability to utilize its tax benefits effectively could have a favorable impact on its financial position, as indicated by the analyst's comments.
The reiteration of the Outperform rating suggests that BMO Capital remains confident in TrueBlue's potential despite the adjustments made to the EPS estimates. The unchanged price target of $12.00 signals the firm's belief in the intrinsic value of the company's shares.
As the staffing industry responds to various economic factors, TrueBlue's financial outlook, as revised by BMO Capital, will be a point of interest for stakeholders following the company's progress.
InvestingPro Insights
TrueBlue's current market dynamics and financial health can be further understood through key metrics and insights from InvestingPro. The company's market capitalization stands at $231.76 million, reflecting its scale in the staffing industry. Despite facing a revenue decline of approximately 14.94% over the last twelve months as of Q2 2024, TrueBlue maintains a gross profit margin of 25.7%, indicating a level of operational efficiency in its cost management. However, the company's profitability challenges are evident, with an adjusted P/E ratio of -3.83, suggesting investor concerns about its earnings outlook.
InvestingPro Tips highlight that TrueBlue is trading near its 52-week low and has experienced significant price volatility, with a price total return of -48.54% over the past year. This could be a point of interest for value investors seeking potential turnaround candidates. Additionally, the company's stock price has taken a substantial hit over the last six months, which may attract investors looking for discounted opportunities.
For investors interested in TrueBlue's financial health and future prospects, InvestingPro offers additional insights. Currently, there are 15 more InvestingPro Tips available, which provide a deeper analysis of the company's financial position and market performance. These tips can be accessed by visiting the dedicated page for TrueBlue on InvestingPro: https://www.investing.com/pro/TBI.
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