Goldman Sachs analyst Suhasini Varanasi upgraded the rating on Adecco Group AG (ADEN – Research Report) to a Buy today, setting a price target of CHF42.00.
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Suhasini Varanasi has given his Buy rating due to a combination of factors that suggest positive future growth for Adecco Group AG. The company has shown improved performance in early 2025 compared to the fourth quarter of 2024, which sets it apart from its peers. This improvement is attributed to Adecco’s successful execution strategy, particularly in securing contracts in significant markets like the United States.
Moreover, despite the prevailing macroeconomic uncertainties, such as potential impacts from US tariffs and the European cyclical recovery, these conditions may actually benefit temporary recruitment, a sector where Adecco is well-positioned. Additionally, the anticipated fiscal stimulus in Germany and increased defense spending in Europe are expected to contribute to a cyclical recovery, enhancing Adecco’s growth prospects. With its current valuation below mid-cycle, the stock presents an attractive investment opportunity, leading to the upgrade to a Buy rating with a 12-month price target of SFr42.
In another report released on March 14, Exane BNP Paribas also upgraded the stock to a Buy with a CHF33.50 price target.