Workforce solutions provider Manpower Inc (MAN) on Monday caught some tepid commentary from analysts at Bank of America.
The firm maintained its “Neutral” rating on MAN but lowered its price target from $44 to $40. That new target suggests a 15% upside to the stock’s Friday closing price of $34.68.
A Bank of America analyst commented, “We remain Neutral on economic uncertainty and concerns about risks to 2013 consensus, offset by a relatively undemanding valuation. We are lowering our price objective to reflect heightened European risk and BofAML economists’ forecast for a 2H12 slowdown in US GDP growth. Our $40 price target is based on 14x (previously 15x) our EPS, a discount to MAN’s 16x 5-year median forward P/E due to the greater level of economic uncertainty.”
Manpower shares posted modest gains in premarket trading Monday.
The Bottom Line
Shares of Manpower (MAN) have a 2.48% dividend yield, based on Friday’s closing stock price of $34.68. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $37-$40 price levels.
Manpower Inc (MAN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.