Needham analyst Kyle Peterson has maintained their neutral stance on TNET stock, giving a Hold rating on July 20.
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Kyle Peterson has given his Hold rating due to a combination of factors impacting TriNet Group’s current market position. The company’s second-quarter performance exceeded market expectations, largely due to successful repricing strategies and slightly improved client hiring. However, despite reaffirming its guidance, the challenging hiring environment and high inflation and claims in the insurance sector present ongoing concerns.
While TriNet is on track to meet its mid-term financial goals, the upcoming year is anticipated to be transitional as the company continues to adjust its insurance pricing and phases out its HRIS business. Additionally, although there is positive feedback regarding the CIE, particularly in the technology sector, the subdued client hiring and the ongoing adjustments in insurance pricing are expected to keep the stock’s performance stable but not exceptional over the next year. Therefore, a Hold rating is deemed appropriate.
Peterson covers the Technology sector, focusing on stocks such as Fair Isaac, Alight, and Affirm Holdings. According to TipRanks, Peterson has an average return of 7.5% and a 48.44% success rate on recommended stocks.
In another report released on July 20, UBS also maintained a Hold rating on the stock with a $73.00 price target.