Jefferies has raised its price target for Manpower Inc. to $36.00 from $32.00 and left its rating at Hold following the staffing company's quarterly results that exceeded consensus estimates. The research house pointed to a combination of geographic trends and client-mix shifts that informed its view.
Manpower shares were trading at $36.33, having climbed 19.5% over the prior week according to market data. The broker's price-target increase followed a quarter in which reported revenue and earnings per share beat consensus by roughly 2% and 12%, respectively.
Guidance and regional trends
In its commentary, Jefferies said Manpower's guidance assumes a sequential improvement in France - a market that accounts for about 27% of the company's revenue - coupled with continued strength in Italy. Those positives, the firm noted, are expected to be counterbalanced by weaker revenue growth in the United States due to difficult year-over-year comparisons.
Margin dynamics and client mix
Despite the quarter's upside, Jefferies warned that Manpower's gross margin will likely remain under pressure. The firm cited an increased business mix toward Enterprise clients as a primary driver compressing margins. That mix shift, according to the note, could constrain near-term margin expansion even as revenues show pockets of strength.
Valuation, dividend profile and cycle positioning
The analyst maintained a Hold rating in part because of the company's current position in the economic cycle. Separately, valuation metrics show the stock trading below its Fair Value estimate while offering a 3.96% dividend yield. The company has continued dividend payments for 32 consecutive years despite recent operational headwinds.
Additional analyst response to quarterly results
ManpowerGroup reported fourth-quarter 2025 earnings per share of $0.64, below the forecasted $0.82 - a negative surprise of 21.95% - while revenue came in at $4.7 billion versus an expected $4.63 billion. Following those results, BMO Capital raised its price target for the company from $44 to $45 and kept an Outperform rating in place.
BMO attributed its target lift to results that slightly exceeded consensus, aided by a weaker U.S. dollar, and noted a modest acceleration in constant-currency growth.
Market reaction and outlook
The combination of a raised target from Jefferies, a Hold stance tied to cycle considerations, and a separate target increase from BMO underscores a mixed analyst response to the quarter. Revenue and EPS beats suggest underlying operational resilience, while margin pressure and regional variability remain salient risks for investors tracking staffing-sector cash flows and profitability.
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