Adecco: Oddo BHF initiates coverage with 'buy' rating.
(CercleFinance.com) - Oddo BHF has initiated its coverage of the Adecco stock with a "buy" rating and a target price of 84 Swiss francs, while it is “neutral” on its Dutch peer Randstad (TP of 55 euros), in a report on both the European temporary employment groups.
The market is "pricing in" the cyclical turnaround; valuation is attractive, with 12-m fwd P/Es of 12.5x and 11.8x for Adecco and Randstad and an FCF yield of an average of 7%-8% for 2017-18, the analyst who monitors the stock said.
The broker sees further growth potential thanks to favourable macroeconomic conditions in Europe, and expects average growth of 7% in 2017, with a normalisation at 4% in 2018.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The market is "pricing in" the cyclical turnaround; valuation is attractive, with 12-m fwd P/Es of 12.5x and 11.8x for Adecco and Randstad and an FCF yield of an average of 7%-8% for 2017-18, the analyst who monitors the stock said.
The broker sees further growth potential thanks to favourable macroeconomic conditions in Europe, and expects average growth of 7% in 2017, with a normalisation at 4% in 2018.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.