Jefferies downgrades PageGroup to 'underperform'

The bank cut PageGroup to ‘underperform’ from ‘hold’ because recent share price outperformance and the premium EV/net fee multiple sits at odds with its exposure to permanent recruitment and China. It lifted the price target to 400p from 360p.

Jefferies reiterated its ‘buy’ rating on Hays and upped the price target to 135p from 125p, saying it offers high exposure to structural growth markets - Germany, IT, green infrastructure - at a modest valuation.

It left Randstad at ‘underperform’, saying it has an unattractive risk/reward over the next 12 months because its premium EV/net fee multiple is vulnerable to a de-rating. Jefferies increased the price target on Randstad to €42 from €36.

The bank kept Adecco and SThree at ‘hold’ and lifted the price targets to CHF34 from CHF29 and to 390p from 320p, respectively.