William Blair analyst Maggie Nolan has maintained their bullish stance on ASGN stock, giving a Buy rating on November 21.
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Maggie Nolan’s rating is based on ASGN’s strategic initiatives and promising financial outlook. The company has recently outlined a comprehensive strategy under the Everforth brand, transitioning from staffing to a focus on services, which is expected to capitalize on the growing demand for digital transformation, AI, and cybersecurity solutions. This strategic shift is supported by a scalable and efficient delivery model, along with a disciplined approach to capital allocation.
Furthermore, ASGN’s growth strategy is underpinned by four key pillars: sustainable revenue growth, resilient margin expansion, strong free cash flow, and disciplined capital allocation. The company anticipates organic revenue growth of 4% to 6% annually, with consulting services expected to outpace market growth, and aims to increase adjusted EBITDA margins to 12.5% to 13.5% by 2028. Additionally, the introduction of a $1 billion share repurchase program, backed by projected free cash flow, further underscores management’s confidence in the company’s financial health and future prospects.
In another report released on November 21, Truist Financial also maintained a Buy rating on the stock with a $50.00 price target.