Adecco: shares drop after Morgan Stanley downgrade
(CercleFinance.com) - Shares in Swiss staffing group Adecco dropped on Friday after Morgan Stanley downgraded its rating on the stock from "overweight" to "equal-weight".
In a note on European recruitment groups, the broker said the share's valuation now offers limited upside.
"To be clear, we are not calling for downside for Adecco shares and our price target still implies a moderate 9% upside," Morgan Stanley analysts wrote in a note, after raising their target from 55 Swiss francs to 59 Swiss francs.
"However, with a lot of positive news priced in, we prefer to hedge our staffers' positioning and take profits," they added.
The Adecco stock was down 0.7% on Friday, but is still up 16% since the end of May, losing just 12.5% since the start of the year.
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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.
In a note on European recruitment groups, the broker said the share's valuation now offers limited upside.
"To be clear, we are not calling for downside for Adecco shares and our price target still implies a moderate 9% upside," Morgan Stanley analysts wrote in a note, after raising their target from 55 Swiss francs to 59 Swiss francs.
"However, with a lot of positive news priced in, we prefer to hedge our staffers' positioning and take profits," they added.
The Adecco stock was down 0.7% on Friday, but is still up 16% since the end of May, losing just 12.5% since the start of the year.
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.