Adecco: Stifel raises target price

(CercleFinance.com) - Stifel reiterates its "buy" recommendation on shares of the Swiss recruitment group Adecco, while raising its target price for them from 58 Swiss francs to 71 Swiss francs, considering the share price's reaction to results as a buy opportunity.


After Adecco's positive feedback for 2021, the broker says that it expects organic growth to improve to +10.3%, above its previous expectation of +5%, also over the current consensus of +8%.

This growth, combined with a higher gross margin, should lead to an improvement in its EBITA margin of 4.3% in 2021. Stifel has increased its 2021 and 2022 earnings estimates by 9.8% and 7.4% respectively.

The share is currently down about 1% at 58 Swiss francs, slightly underperforming the market in Zurich.



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