2023-05-12 14:56:42 ET
TriNet Group ( NYSE: TNET ) stock gapped up 3.4% in Friday mid-afternoon trading after Needham started coverage of the human resources services provider with a Buy rating, citing a discounted valuation.
Shares traded at a price-to-earnings multiple of 14.2 times the firm's 2024 EPS estimate, representing a discount to peers, analyst Kyle Peterson wrote in a note. Since the start of 2023, TNET climbed 32%.
TNET made it to the Quant system's list of the top five best rated HR-related stocks.
The company's "leading competitive positioning and the massive and growing market for PEO and HR services bode well for share gains in the market while the company also expands and enhances its product suite," the note said.
The Buy rating disagrees with the Quant rating of Hold and aligns with the average Wall Street analyst rating.
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TriNet stock drives up as Needham starts at Buy, citing discount