Needham downgrades TriNet to Hold on ‘sizable headwinds’

Needham downgraded TriNet (TNET) to Hold from Buy without a price target The company’s Q3 results missed estimates on the top and bottom line, as weaker net client hiring and higher insurance costs remain “sizable headwinds,” the analyst tells investors in a research note. The firm says the Q4 guidance was also sharply below consensus, “highlighting that these challenges are unlikely to abate soon.” Needham expects it to take time for TriNet to return to a healthy balance of growth and profitability.