- JPMorgan downgraded ManpowerGroup ( NYSE: MAN ) to Neutral from Overweight on Monday. The firm called the staffing company at risk due to decelerating trends and rising recessionary risks.
- "With high energy prices and high inflation, central banks around the world are tightening monetary conditions. MAN's global presence makes the company's operations more at risk to economic shocks especially in Europe (68% of company's 2021 revenue)" wrote JPMorgan's analyst Andrew Steinerman.
- The US represented just 13% of MAN's total revenues in 2021.
- Steinerman said in the instance that global economies enter a recession, the firm estimates there could be further 24% downside risk to MAN stock price from current levels, assuming a valuation of 0.20x.
- With this investment thesis, JPMorgan lowered its price target on MAN to $75 from prior $145.
- Shares of ManpowerGroup ( MAN ) fell 1.5% in premarket trading on Monday to $77.47 vs. the 52-week trading range of $73.91-$123.84.
- Contributor at Seeking Alpha presented a case at Hold rating stating, "ManpowerGroup At Fair Value Now, But A Recession Is Not Priced In."
For further details see:
ManpowerGroup's exposure to Europe triggers downgrade at JPMorgan on rising recessionary risks