Zacks Investment Research downgraded shares of ManpowerGroup Inc. (MAN) from OUTPERFORM to NEUTRAL on November 05, 2014, with a target price of $69.00.
A patchy recovery in Europe, Latin America and some Asian countries coupled with a weak performing Right Management business are ManpowerGroup's most immediate concerns. This is well reflected from the company's third-quarter 2014 revenues of $5,416 million that fell short of the Zacks Consensus Estimate. Moreover, taking into account the currency headwinds, management expects fourth quarter 2014 earnings to be hurt by $0.08 per share and mar revenue growth by 5%. Consequently, we downgraded our recommendation to Neutral. However, what still provided cushion to the stock was top and bottom-line growth of 4.4% and 36.4%, respectively.. Moreover, management believes that soft recovery reflects more of a pause rather than another downturn and will be short lived. Taking no chances, the company has adopted a strong pricing and productivity management approach to ensure uninterrupted profitability. Share repurchasing activity is also playing a major role.
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