Recruiter PageGroup shares dip after Jefferies cuts rating
By Scott Kanowsky
Investing.com -- London-listed shares in PageGroup PLC (LON:PAGE) fell on Wednesday after Jefferies cut its rating of the global staffing agency to "underperform" from "hold."
Analysts at Jefferies argued that the recent outperformance of shares in the group stands at odds with its exposure to a potential downturn in permanent hiring and ongoing COVID-19 lockdowns in China, which accounts for 6% of the business.
It is now the only negative analyst rating for PageGroup, the Weybridge, England-based recruiter with operations in 37 countries that specializes in hiring executives and professionals.
In its third quarter results, PageGroup warned of a "slight softening" in the willingness of employers to hire across most of its markets, with some firms pulling back on bringing on new employees at the end of the third quarter and withdrawing job offers.
PageGroup chief executive officer Steve Ingham also noted that temporary recruitment outpaced permanent, "as clients looked for more flexibility in their resourcing and cost base, reflecting the current economic uncertainty." The Jefferies analysts said that PageGroup's split between temporary and permanent recruiting is "approximately 20:80," meaning it has greater exposure to a slump in hiring for long-term positions.
Meanwhile, an October survey showed that many British workers are shying away from changing jobs due to concerns over a broader economic slowdown.
Jefferies cut its estimate for PageGroup's 2022 earnings before interest and taxes by 2% to £200.7 million (£1 = $1.2210). A company-compiled forecast of annual operating profit sees the figure at £204M.
Shares in PageGroup have dipped by more than 24% over the past one-year period.
Related Articles
Recruiter PageGroup shares dip after Jefferies cuts rating
Generali plans sale of $21 billion of its Italian life insurance portfolio -Bloomberg News
Elon Musk briefly loses title as world's richest person to LVMH's Arnault - Forbes
