TriNet initiated with a Hold at Truist

Truist initiated coverage of TriNet (TNET) with a Hold rating and $62 price target Macroeconomic uncertainty and an increase in medical care utilization has created headwinds for TriNet on the worksite employee and insurance cost front, but the the firm ultimately expects the company to adequately reprice the insurance and return to WSE growth. However, while the firm thinks the company’s use of the indirect channel and offshoring of labor can improve growth and margins, timing remains uncertain and drives its Hold rating, the analyst tells investors.