Insperity initiated with an Underweight at JPMorgan

JPMorgan initiated coverage of Insperity (NSP) with an Underweight rating and $90 price target The company recently “has encountered the dual headwinds” of softer small business hiring and normalization from pandemic pull-forward of growth, the analyst tells investors in a research note. The firm says that while macro environment improvement should help growth reacceleration, Insperity “is taking a big swing” at expanding its total addressable market by building a joint-platform from scratch with Workday to better serve and retain larger businesses. Insperity faces asymmetric up/downside relative to Workday and visibility is low, which makes JPMorgan cautious, the analyst contends.