Manpower stock target cut to $68 at BMO Capital on FX headwinds

Published 18/01/2025, 05:56 am
MAN
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The staffing firm is navigating these challenges as it enters 2025, with currency fluctuations and economic uncertainties potentially affecting its operations, particularly in Europe where it has significant exposure. The updated price target by BMO Capital reflects these concerns and anticipates their influence on Manpower's future financial results.

With a beta of 1.44, the stock shows higher sensitivity to market movements, though its strong dividend history and market position as a prominent player in Professional Services provide some stability. With a beta of 1.44, the stock shows higher sensitivity to market movements, though its strong dividend history and market position as a prominent player in Professional Services provide some stability.

Jeffrey Silber of BMO Capital cited the impact of foreign exchange rates as a significant factor in the decision to lower the price target. Manpower had based its fourth-quarter 2024 guidance on FX rates of 1.100 for the Euro and 1.31 for the British pound against the U.S. dollar. However, since that guidance was provided, both the Euro and the pound have depreciated by approximately 6% and 7%, respectively, against the dollar, which has implications for the company's financials.

The staffing firm is navigating these challenges as it enters 2025, with currency fluctuations and economic uncertainties potentially affecting its operations, particularly in Europe where it has significant exposure. The updated price target by BMO Capital reflects these concerns and anticipates their influence on Manpower's future financial results. With a beta of 1.44, the stock shows higher sensitivity to market movements, though its strong dividend history and market position as a prominent player in Professional Services provide some stability.

The staffing firm is navigating these challenges as it enters 2025, with currency fluctuations and economic uncertainties potentially affecting its operations, particularly in Europe where it has significant exposure. The updated price target by BMO Capital reflects these concerns and anticipates their influence on Manpower's future financial results.

In other recent news, Manpower Inc . reported a 2% decline in third-quarter revenue, totaling $4.5 billion, and an 8% decrease in adjusted earnings per share to $1.29. Despite this, the company's Talent Solutions revenue saw a 7% rise, primarily driven by a 9% revenue increase in Japan. The company also announced a semi-annual dividend of $1.54 per share.

Furthermore, ManpowerGroup (NYSE:MAN) announced the retirement of Richard Buchband, Senior Vice President, General Counsel, and Secretary, effective December 31, 2024. Ger Doyle has been appointed as the new U.S. Country Manager, succeeding Kye Mitchell as Head of Experis U.S.

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