TD Cowen analyst Jared Levine downgraded the rating on TriNet Group (TNET – Research Report) to a Hold today, setting a price target of $74.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jared Levine’s rating is based on several factors that suggest TriNet Group’s stock may remain stagnant in the near term. The downgrade from Buy to Hold was influenced by the company’s recent quarterly results and a less favorable fiscal year 2025 outlook, which were worse than anticipated. The company is still in the early phases of its strategic initiatives and is grappling with managing investor expectations amidst ongoing uncertainties related to insurance risks.
Levine points out that the company faces constraints due to its current net debt level, which limits its ability to leverage share repurchases as a strategy to capitalize on any weakness in share prices. Additionally, the price target was reduced to $74, reflecting a valuation based on a projected price-to-earnings multiple that is slightly below its three-year average. As a result, Levine is cautious about recommending more aggressive action until there is more evidence of consistent progress in TriNet’s strategic initiatives and improved investor sentiment.