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BMO Raises Manpower Price Target to $87 on Stabilizing Trends

EditorBrando Bricchi
Published 07/18/2024, 03:52 PM
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On Thursday, BMO Capital Markets adjusted its outlook on Manpower Inc . (NYSE:MAN), a workforce solutions company, by raising the price target from $80.00 to $87.00 while keeping a Market Perform rating on the stock.

Manpower Inc. recently reported its earnings, revealing a slight beat on adjusted earnings per share (EPS), attributed to positive results from below-the-line items. The company, however, faced challenges in the European market, particularly with a downturn in permanent recruitment, which is anticipated to continue due to declining hiring confidence.

Despite the current weakness in Europe, Manpower's management is optimistic about the future, expecting stabilization or potential improvement in most geographies during the third quarter of 2024. The company's third-quarter guidance for 2024 is promising, with consensus estimates at the higher end for most financial metrics.

In light of the recent earnings report and the company's outlook, BMO Capital has revised its estimates and target price for Manpower. The analyst's commentary indicates a growing confidence in the company's performance, suggesting a potential shift in sentiment towards the stock.

In other recent news, ManpowerGroup (NYSE:MAN), a global workforce solutions company, reported a decrease in revenue for the first quarter of 2024, reaching $4.4 billion, marking a 5% year-over-year decline. Despite this, the company announced an increase in its semi-annual dividend by 4.8 percent to $1.54 per share. These developments are part of recent events surrounding the company.

Argus maintained its Hold rating on ManpowerGroup shares, reflecting challenging economic conditions and a decrease in demand for staffing services. However, the firm expressed a positive outlook on the company's long-term prospects. BMO Capital Markets also adjusted its outlook on Manpower, increasing the price target to $84 from the previous $81, while maintaining a Market Perform rating on the shares.

Despite the revenue dip, ManpowerGroup remains committed to its Diversification, Digitization, and Innovation strategy. The company is actively pursuing strategic initiatives to drive demand and continues its global expansion. ManpowerGroup's management remains focused on productivity initiatives and cost-cutting efforts to navigate the current economic climate.

InvestingPro Insights

Following BMO Capital Markets' updated outlook on Manpower Inc. (NYSE:MAN), a dive into InvestingPro's real-time data and expert tips provides a deeper understanding of the company's financial health and market position. With a market capitalization of $3.54 billion and a trailing twelve-month revenue of $18.57 billion, Manpower's financial scale is notable. The company's dividend yield stands at an attractive 4.15%, reflecting its commitment to returning value to shareholders, a sentiment echoed by its 13.24% dividend growth in the last twelve months.

InvestingPro Tips highlight Manpower's proactive management strategies, such as aggressive share buybacks and the maintenance of dividend payments for 31 consecutive years. Additionally, the company's net income is projected to grow this year, which may reassure investors looking for stability and growth potential. With a significant return over the last week of 7.69%, Manpower is catching the attention of investors seeking short-term gains.

For those interested in a comprehensive analysis with additional insights, InvestingPro offers a total of 11 expert tips for Manpower Inc. To gain access to these valuable recommendations and to enhance your investment strategy, consider using the coupon code PRONEWS24 to receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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