Adecco: shares up after broker raises target price

(CercleFinance.com) - Adecco rose 0.
2% to 55.4 Swiss francs on Friday after Barclays raised its target price for the stock from 61 Swiss francs to 64 Swiss francs, representing 16% upside potential.

The broker - which is sticking to its "overweight" rating on the stock - said that the share no longer price in "an Armageddon scenario" after it has rallied around 25% from its January lows.

That said, its current valuation still suggests the market is pricing in a "mild recession," the broker wrote, leaving scope for multiple expansion and earnings upgrades should Europe's recent downturn prove to be softer than expected.

In addition, Adecco's ambitious 2020 cost saving program points to "significant" margin enhancement and earnings upside, Barclays said.

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