TriNet (TNET): Incremental Outlook Improvements but Limited Upside Support a Hold Rating

In a report released today, Jared Levine from TD Cowen maintained a Hold rating on TriNet Group, with a price target of $40.00.

Jared Levine has given his Hold rating due to a combination of factors related to TriNet’s updated outlook and valuation. While he modestly raised revenue projections on expectations for stronger ASO performance, and lifted adjusted EBITDA and EPS forecasts due to anticipated efficiency gains in customer support and lower depreciation and amortization, he does not see enough upside to justify a more bullish stance.

Levine also trimmed his price target from $44.00 to $40.00, anchoring it to a 9.0x multiple of his CY27E P/E estimate, which suggests the shares are fairly valued relative to their long-term earnings profile. Taken together, the incremental fundamental improvements are largely reflected in the current stock price, leading him to maintain a neutral, or Hold, recommendation on TNET.

In another report released on March 20, TipRanks – Anthropic also reiterated a Hold rating on the stock with a $36.00 price target.