Adecco: Oddo BHF still a buyer
(CercleFinance.com) - After Adecco's publication of its quarterly results, analysts at Oddo BHF said they are maintaining their "buy" recommendation on the stock of the Swiss temporary employment group, in particular believing that the second half should be better.
The group remains confident in achieving its cost-reduction target of 50 million euros this year, meaning to an impact of around +40 bp on its EBITA margin in H2 2018. This, coupled with improved productivity in some countries and leverage in others should cushion the impact of internal investments, and result in an improvement in its EBITA margin. Note that this will be more visible in Q4, thus limiting the decline over the full-year, Oddo BHF expects.
In addition to maintaining its "buy" rating on the stock, the analyst confirms his target price of 71 Swiss francs.
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The group remains confident in achieving its cost-reduction target of 50 million euros this year, meaning to an impact of around +40 bp on its EBITA margin in H2 2018. This, coupled with improved productivity in some countries and leverage in others should cushion the impact of internal investments, and result in an improvement in its EBITA margin. Note that this will be more visible in Q4, thus limiting the decline over the full-year, Oddo BHF expects.
In addition to maintaining its "buy" rating on the stock, the analyst confirms his target price of 71 Swiss francs.
Copyright (c) 2018 CercleFinance.com. All rights reserved.