Yahoo Finance Randstad shares slip after BNP Paribas Exane analysts cut rating of staffing group
By Scott Kanowsky
Investing.com -- Shares in Randstad NV (AS:RAND) dipped on Tuesday, touching their lowest mark since November, after analysts at BNP Paribas Exane slashed their rating of the Dutch staffing firm to neutral from outperform.
In a note to clients, the analysts took a cautious view of the outlook for Randstad, citing weakening macroeconomic momentum and pressure in its key end markets.
Randstad, as well as peer Adecco (SIX:ADEN), have faced a slowdown in hiring activity as companies react to recently elevated inflation.
In February, Randstad Chief Executive Sander van 't Noordende flagged that client demand for its services moderated in the fourth quarter. He warned that this trend has continued into 2023.
Despite these headwinds, the Amsterdam-based company posted quarterly underlying earnings before interest, taxes and amortization of €364 million (€1=$1.0928), beating company-compiled estimates of €329 million. CEO van 't Noordende added that the group was "well-positioned" to handle the broader economic challenges.
In a separate announcement, Randstad said that Chief Executive of Southern Europe and Latin America Jorge Vazquez will replace Henry Schirmer as group finance chief. Human resources head Myriam Beatove Moreale was also nominated to join Randstad's executive board.
As part of their argument for slashing their rating of Randstad, the analysts at BNP Paribas Exane said the new-look leadership team will need time to establish a proven track record.
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