TriNet Group’s Stable Outlook Amid Strong Performance and Persistent Challenges

Jared Levine, an analyst from TD Cowen, maintained the Hold rating on TriNet Group. The associated price target was lowered to $72.00.

Jared Levine’s rating is based on a combination of factors that suggest TriNet Group’s stock is likely to remain stable in the near term. The company reported a strong second-quarter performance, exceeding revenue and earnings expectations, which positions it well to meet its fiscal year 2025 guidance. However, despite this positive performance, several challenges persist that may limit significant stock appreciation.
Key concerns include the volatility in healthcare costs, uncertainties in net client hiring, and the timing of growth in co-employed worksite employees. Additionally, while TriNet is making progress on its strategic initiatives, execution risks remain. These factors contribute to Levine’s Hold rating, as the stock is expected to trade within a narrow range, with a revised price target of $72 reflecting these considerations.