TNET - TriNet Group stock slips after J.P. Morgan downgrades to Underweight

• Trinet Group ( NYSE: TNET ) stock has dropped 2.0% in Tuesday morning trading after J.P. Morgan analyst Tien-tsin Huang downgraded the human resources/payroll company's rating to Underweight.
• The company has lagged worksite employee volume growth, is over-indexed in the technology vertical, which could see medium-term headwinds, and health care utilization should continue normalizing, narrowing TNET's margin for error, Huang wrote in a note to clients.
• The analyst, rather, prefers Alight ( ALIT ) in the human resources space, given its "reasonable line-of-sight into double-digit EBITDA growth at an attractive valuation."
• In contrast to Huang's Underweight rating, the Quant system ranks TriNet ( TNET ) at Hold , while the average Wall Street rating is Buy.
• In July, TriNet ( TNET ) posted Q2 adjusted EPS of $1.72, beating the $1.15 consensus, and revenue of $1.2B rose 9.1% Y/Y. SA  contributor Kempano Investor, who's bullish on the stock, considers the company reasonably valued amid emerging competition

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