Analyst Remi Grenu of Morgan Stanley maintained a Hold rating on PageGroup, retaining the price target of p275.00.
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Remi Grenu has given his Hold rating due to a combination of factors impacting PageGroup’s performance. The company’s recent quarter was marked by an unusual pattern of holidays, making it difficult to discern clear trends, especially in Europe where there was a slight decline in job acquisitions. However, this was somewhat balanced by high activity levels in Asia and the US, where improvements in the conversion of job offers to accepted placements were noted.
Additionally, PageGroup’s restructuring efforts, particularly in Europe, have led to significant costs, with anticipated benefits not fully realized yet. The management’s forecasts align with current consensus, but uncertainties remain, particularly regarding the conversion rate of salary offers into revenues. Despite some positive signs, such as growth in Asia, the need for more effective negotiations between clients and candidates suggests caution. These mixed signals contribute to the Hold rating, as the company navigates through these transitional challenges.
According to TipRanks, Grenu is a 2-star analyst with an average return of 0.8% and a 51.00% success rate. Grenu covers the Industrials sector, focusing on stocks such as PageGroup, Adecco Group AG, and Hays plc.
In another report released on June 23, UBS also downgraded the stock to a Hold with a p250.00 price target.