Adecco: Credit Suisse says sell but raises TP
(CercleFinance.com) - Credit Suisse reiterates its "underperform" rating on the share of Adecco Group, although has raised its corresponding target price rice target from 40 Swiss francs to 45 Swiss francs, following an 18% increase to its 2020 EPS estimate, with lower net debt expected in 2021.
The broker highlights the HR group's solid performance in Q3, despite very difficult market conditions, along with improved cost dynamics in Q4.
However, it expects "longer term profit growth to be limited by technology enabled shift to digital platforms and in-house solutions as well as the negative headwinds on demand from automation".
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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.
The broker highlights the HR group's solid performance in Q3, despite very difficult market conditions, along with improved cost dynamics in Q4.
However, it expects "longer term profit growth to be limited by technology enabled shift to digital platforms and in-house solutions as well as the negative headwinds on demand from automation".
Copyright (c) 2020 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.