Adecco: Oddo BHF still a buyer, but cuts target price
(CercleFinance.com) - Oddo BHF maintains its "buy" rating on Adecco, cutting its target price for the share from 83 Swiss francs to 71 Swiss francs, updating its estimates (2018/19 EPS estimates cut by -2%/- 6%) and its valuation, by integrating bottom-of-cycle multiples.
With the human resources group set to publish its results on 9 August, the broker expects its second quarter to be marked by the sequential slowdown in organic growth to 3.9% adjusted for business days and a decline in its EBITA margin to 4.4%.
However, Oddo BHF believes that the share price's excessive fall (-18% since the beginning of the year) gives it an attractive valuation. Although it is more cautious about growth prospects in 2018/19, it is not alarmist, the analyst who monitors the stock says.
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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.
With the human resources group set to publish its results on 9 August, the broker expects its second quarter to be marked by the sequential slowdown in organic growth to 3.9% adjusted for business days and a decline in its EBITA margin to 4.4%.
However, Oddo BHF believes that the share price's excessive fall (-18% since the beginning of the year) gives it an attractive valuation. Although it is more cautious about growth prospects in 2018/19, it is not alarmist, the analyst who monitors the stock says.
Copyright (c) 2018 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.