Adecco: Oddo BHF still a buyer, but cuts target price

(CercleFinance.com) - Oddo BHF maintains its "buy" rating on Adecco, cutting its target price for the share from 83 Swiss francs to 71 Swiss francs, updating its estimates (2018/19 EPS estimates cut by -2%/- 6%) and its valuation, by integrating bottom-of-cycle multiples.


With the human resources group set to publish its results on 9 August, the broker expects its second quarter to be marked by the sequential slowdown in organic growth to 3.9% adjusted for business days and a decline in its EBITA margin to 4.4%.

However, Oddo BHF believes that the share price's excessive fall (-18% since the beginning of the year) gives it an attractive valuation. Although it is more cautious about growth prospects in 2018/19, it is not alarmist, the analyst who monitors the stock says.



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