Bank of America Double-Ups Randstad to “Buy” with Raised Price Target
Bank of America has boosted its rating on Randstad NV (AS:) to “Buy” from “Underperform,” accompanied by a price objective hike to €42 from €39.50. The brokerage points to early signs of stabilization in European staffing markets, as well as sequential improvement in North America.
The bank suggests that growth momentum may be bottoming after Q1 2025, with Randstad’s shares often rallying ahead of earnings per share (EPS) troughs. Additionally, the firm notes that short interest in Randstad is at 9%, indicating a potential rebound.
In contrast, Bank of America retained an “Underperform” rating on Adecco (SIX:), slashing its price objective to CHF 19.50 from CHF 24.50. The firm highlighted Adecco’s weaker operational track record, high leverage, and overexposure to deteriorating markets such as France, as well as the risk of dividend cuts in 2025-2026 as Adecco focuses on deleveraging.
Bank of America expects sequential improvement for the staffing sector to start in Q2 2025, in line with market growth forecasts.