ASGN initiated with an Equal Weight at Wells Fargo

Wells Fargo initiated coverage of ASGN (ASGN) with an Equal Weight rating and $56 price target The company’s shift from staffing to higher-margin, less cyclical IT consulting remains underappreciated, the analyst tells investors in a research note. The firm says that while ASGN’s earnings should improve on a better demand backdrop, it is cautious on Department of Government Efficiency’s impact. ASGN’s federal government segment is 30% of revenue and was previously viewed as a defensive counterbalance to its cyclical commercial business but is now under pressure from DOGE cost-cutting, contends Wells.