Adecco: shares jump on Credit Suisse double upgrade
(CercleFinance.com) - Credit Suisse upgraded the Adecco share directly to "outperform" from "underperform" on Monday, which boosted the Swiss staffing group's shares on the Zurich Stock Exchange.
In a note to clients, the brokerage firm said that recovering markets and improving economic expectations should support the share's valuation.
"We think the market is missing the pace of recovery through 2021 and the consequent operational leverage," Credit Suisse said, raising its target price from 45 Swiss francs to 62 Swiss francs.
Adecco is trading at a 9% discount in terms of P/E to FTSE Europe, although through periods of economic recovery it has historically traded at a 80% premium, the private bank added.
Adecco shares were trading 3.9% higher on Monday on the Zurich Stock Exchange.
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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 to clients, the brokerage firm said that recovering markets and improving economic expectations should support the share's valuation.
"We think the market is missing the pace of recovery through 2021 and the consequent operational leverage," Credit Suisse said, raising its target price from 45 Swiss francs to 62 Swiss francs.
Adecco is trading at a 9% discount in terms of P/E to FTSE Europe, although through periods of economic recovery it has historically traded at a 80% premium, the private bank added.
Adecco shares were trading 3.9% higher on Monday on the Zurich Stock Exchange.
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.