Adecco: stock up with broker upgrade

(CercleFinance.com) - The share of recruitment giant Adecco is up 2.
4% in Zurich on Friday, boosted by Morgan Stanley upgrading its rating on the share from "weight in line" to "overweight," having increased its corresponding target price from 60 Swiss francs to 67 Swiss francs.

"Organic growth remains key, but we think the market underestimates Adecco's self help potential and operating leverage," the broker summarises in its research note.

Adds that disaggregating the components of Adecco's margin suggests upside of 30bps, or 7%-8% to the 2020 consensus, hence presenting a clear opportunity for investors.



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