ManpowerGroup's (MAN) first-quarter 2011 results topped Zacks expectations on the heels of revenue growth across all geographies with several European and emerging markets portraying robust trends. Management now expects second-quarter 2011 earnings between $0.74 and $0.82 per share.
We believe that ManpowerGroup's brand value, comprehensive range of services and a strong global network provides a competitive advantage and reinforces its dominant position in the market. Moreover, the company stands to benefit from growth prospects in under-penetrated staffing markets.
The stock is trading at a discount based on its fiscal 2011 forward earnings estimate. We have a long-term Outperform recommendation on the stock. Our target price of $61.00, 19.4X 2011 EPS, reflects this view.
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