Jefferies has raised its opinion on Randstad from 'Underperform' to 'Hold', with a price target maintained at 42 euros, believing that there is no longer sufficient downside potential to justify a negative stance after the stock's recent underperformance.
'Job vacancies are not improving in major labor markets and manufacturing PMIs remain weak, but Randstad and Manpower have pointed to the sequential stabilization of temporary work volume in recent weeks', notes the broker.
Jefferies also points out that Randstad slightly increased its headcount in the first quarter for the first time in six quarters. Nevertheless, it is reducing its EPS estimates for the Dutch human resources services group by 5%.
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Randstad N.V. is the world's No. 1 of human resources services. Net sales break down by activity as follows:
- generalist staff placement outside the classic sectors (45.4%): primarily administrative, light industry, logistics staff, etc.;
- generalist staff placement from onsite agencies (25.3%): primarily for clients in the consumer goods, automotive, life sciences and other industries;
- specialized staff placement (23.8%): primarily high-level and experienced professionals in the fields of IT, engineering, business, health, etc. In addition, the group offers services for the permanent staff of its clients (outplacement services, reintegration and salary management);
- other (5.5%).
At the end of 2023, the group had 2,761 branches worldwide.
Net sales are distributed geographically as follows: the Netherlands (12.7%), the United States (18.8%), France (15.1%), Italy (8.5%), Germany (7.4%), Belgium (6%), Spain (5%), Australia (4.6%), the United Kingdom (4.3%), Japan (3.2%), Canada (2.3%), Switzerland (1.9%), India (1.5%), Portugal (1.3%), Poland (1.2%), Sweden (1.2%) and other (5%).
RANDSTAD N.V. 
