Joseph Vafi, an analyst from Canaccord Genuity, maintained the Buy rating on ASGN (ASGN – Research Report). The associated price target is $115.00.
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Joseph Vafi has given his Buy rating due to a combination of factors highlighting ASGN’s strategic advances and financial resilience. The company has demonstrated steady quarterly results, with a notable shift towards higher-value consulting services, which now account for a significant portion of its business. Despite a slow top-line growth, ASGN has maintained strong margins, and there is cautious optimism that enterprise IT spending will improve in the future.
The acquisition of TopBloc, a preferred Workday service partner, is seen as a strategic move that strengthens ASGN’s position in the ERP space, enhancing its capabilities alongside key platforms like ServiceNow and Salesforce. Additionally, the company’s commitment to stock buybacks and prudent M&A activities further support the positive outlook. The focus on higher-margin consulting and digital transformation needs among large enterprises and the public sector positions ASGN well for future growth, making its valuation and free cash flow yield appealing to investors.
In another report released yesterday, Truist Financial also maintained a Buy rating on the stock with a $105.00 price target.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ASGN in relation to earlier this year.