Analyst Joshua Chan from UBS maintained a Hold rating on ManpowerGroup and decreased the price target to $40.00 from $46.00.
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Joshua Chan has given his Hold rating due to a combination of factors including expectations for the third quarter results to align with the lower end of guidance, which matches the subdued market expectations. Despite this alignment, there is a concern that the estimates for the fourth quarter and 2026 are overly optimistic, posing a risk as the company approaches its earnings release.
Additionally, the company’s shares have underperformed the S&P 500 by over 10% since the last quarter, and with the challenging macroeconomic environment and the need for downward adjustments in forward estimates, there is hesitance to take a more positive stance. The U.S. organic revenue forecast has worsened, and while some international data shows slight improvements, the overall outlook remains cautious. Furthermore, while foreign exchange changes offer a minor positive impact, it is not enough to significantly alter the overall cautious perspective.