Adecco: biggest loser on SMI index after broker downgrade
(CercleFinance.com) - Adecco is the biggest loser on Zurich's SMI index today, down 3.
7% at 56.9 Swiss francs after Deutsche Bank downgraded the stock from "hold" to "sell."
In a note to clients, the broker said it is worried by weakening indicators in the US.
"The US only accounts for 20% of profits of Adecco and Randstad but it has accounted for 50/60% of the growth of EBITA since 2008, respectively, for both companies and a US recession would almost certainly have a knock-on negative impact on European growth," it wrote.
Deutsche Bank also cut its target price for the share of the Swiss staffing group from 52 Swiss francs to 50 Swiss francs.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
7% at 56.9 Swiss francs after Deutsche Bank downgraded the stock from "hold" to "sell."
In a note to clients, the broker said it is worried by weakening indicators in the US.
"The US only accounts for 20% of profits of Adecco and Randstad but it has accounted for 50/60% of the growth of EBITA since 2008, respectively, for both companies and a US recession would almost certainly have a knock-on negative impact on European growth," it wrote.
Deutsche Bank also cut its target price for the share of the Swiss staffing group from 52 Swiss francs to 50 Swiss francs.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.