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BUZZ-Staffing companies: on a tear

** Hays (LSE: HAS.L - news) hits levels not seen in nearly 8 yrs, with Randstad close to 8-yr highs following two-notch BofA Merrill Lynch upgrade on the pair to "buy" vs "underperform"

** Broker raises its staffing-sector earnings forecasts by an average of 15% to reflect an improving European macro outlook

** Sees "significant" upside in spite of re-rating in anticipation of improving macro trends

** BofA ML's top pick Randstad; reckons the Street does not appreciate how high margins could go, driven by mix shift towards perm, rational pricing in temp & external factors

** Hays trading update due Fri; BofA ML says message from mgmt likely to be positive, with scope for Germany (c.40% of EBIT) to be seeing early signs of improvement

** Robert Walters (LSE: RWA.L - news) on Weds forecast FY profit ahead of mkt expectations, boosting its shares & lifting sector (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)