Morgan Stanley analyst Remi Grenu maintained a Hold rating on Randstad Holding NV (0NW2 – Research Report) today and set a price target of €41.50.
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Remi Grenu has given his Hold rating due to a combination of factors affecting Randstad Holding NV. The labor market is currently facing challenges, with declining vacancies and low rates of hiring, quitting, and layoffs, partly due to a post-COVID normalization and ongoing macroeconomic and political uncertainties. While management perceives the market to be stabilizing with some positive elements, no significant positive trends have been identified.
Geographically, there is optimism in the US due to favorable economic policies, but this has not yet resulted in a substantial market improvement. Southern Europe shows positive growth, whereas Northern and Western Europe face more difficulties. The company’s gross margin fell short of expectations due to negative geographical and mix effects, along with increased idle time and sickness rates. Additionally, substantial one-off costs and weaker cash generation present further challenges, contributing to the Hold rating as the outlook remains fragile and uncertain.
In another report released on February 10, Deutsche Bank also maintained a Hold rating on the stock with a €40.00 price target.