Wednesday tips round up: Adecco, Prudential

LONDON (ShareCast) - (ShareCast News) - It is over to Adecco (VTX: ADEN.VX - news) 's incoming chief executive Alain Dehaze to show he was the right hire to lift profitability, the Financial Times' Lex column said. Recruitment specialist Adecco's selling, general and administrative expenses outpaced revenue in the first half of this year.

Adecco operates in a cyclical environment, Lex said, as its temporary workers are hired when economic activity picks and conversely are fired when it cools down.

Outgoing chief executive Patrick De Maeseneire's margin target requires underlying revenue to increase significantly, Lex said.

The pressure was on Dehaze to beat his predecessor's cost-cutting record, Lex said.

The Times' Tempus said there was not a lot that Prudential (HKSE: 2378.HK - news) chief executive Mike Wells can do wrong.

Prudential has M&G, one of the best performing fund managers, was well positioned in Asia, its Jackson offshoot saw profits lift in the first half, and Britain it seemed confident it would sale through tighter capital requirements brought in by the government.

Tempus said investors should buy as shares had fallen and looked undervalued.