Jason Haas CFA, an analyst from Wells Fargo, maintained the Hold rating on ASGN. The associated price target was lowered to $51.00.
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Jason Haas CFA’s rating is based on a combination of factors reflecting both positive and challenging aspects of ASGN’s current financial performance and market conditions. Despite ASGN delivering a strong second-quarter performance with earnings per share exceeding market expectations and providing optimistic guidance for the third quarter, macroeconomic uncertainties continue to impact discretionary spending. This uncertainty is particularly evident in the decline of assignment revenue, which has been offset by growth in commercial consulting revenue.
Moreover, while demand for AI and technological transformation remains robust, the company faces persistent headwinds from the Department of Government Expenditure (DOGE), which have affected new contract awards. Although ASGN is aligned with government priorities on cost efficiency and potential increases in defense spending, these factors contribute to a cautious outlook. Additionally, the company’s gross margins have been slightly below guidance due to a higher volume of low-margin software licenses. These mixed signals have led Jason Haas to maintain a Hold rating, reflecting a balanced view of potential growth opportunities and existing challenges.