Adecco: share falls wifh Deutsche Bank downgrade

(CercleFinance.com) - On Monday, Adecco shares posted the second biggest drop on the Zurich Stock Exchange's SMI MID mid-cap index, with Deutsche Bank expressing concern about the effects of the current economic climate on the recruitment group's business.


An hour into trading, the share lost 0.6%, while the SMI MID was up over 0.1%.

The recruitment market has been affected by heightened political and economic uncertainty in Europe, and is now faced with the possibility that tariffs imposed by the USA will reduce the prospects of a rapid recovery, Deutsche Bank explains.

The broker believes that the UK, France and Germany, which account for around 40% of the European sector's activity, are the most affected by these difficulties.

Regarding Adecco, the analyst believes that the group's heavy exposure to the French market is likely to penalise its earnings prospects in particular.

Deutsche Bank has therefore downgraded the stock to 'hold', from 'buy', with a target price lowered from 36 CHF to 25 CHF.


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